The World Bank has projected that Pakistan will require a staggering $350 billion investment between 2023 and 2030 to address its climate challenges, representing nearly 10% of the nation’s cumulative GDP during this period.

The estimate includes $153 billion dedicated to adaptation and resilience, and $197 billion aimed at decarbonization efforts.

The World Bank’s proposed 10-year Partnership Framework with Pakistan seeks to enhance climate resilience for over 100 million people in the next decade. With Pakistan ranking among the top 10 countries globally most affected by climate change and natural disasters, the framework is seen as critical.

The 2022 floods underscored the severe impact of climate change on Pakistan’s growth and its human and natural capital.

The framework plans to bolster agricultural productivity and resilience amid water scarcity, droughts, heatwaves, and shifting rain patterns, necessitating significant changes in the agriculture sector.

This includes sustainable water and irrigation management to boost productivity while minimizing environmental degradation. Smallholder producers will receive support for better organization, financial access, and integration into agribusiness value chains, including livestock.

The framework also aims to strengthen resilience to floods and other climate-related disasters through improved planning and preparedness.

It includes support for climate and disaster risk finance instruments, social protection, and monitoring, along with nature-based solutions to mitigate impacts and ensure continued access to livelihoods and public goods.

The framework emphasizes strengthening national social protection systems to safeguard the most vulnerable during shocks.

The International Finance Corporation (IFC) will focus on adaptation solutions for industry and construction, climate-resilient urban infrastructure investments, and building capacity for strong environmental, social, and governance (ESG) systems.

Additionally, the IFC and the World Bank Group (WBG) Guarantee Platform will facilitate mobilization of climate blended finance funds to support climate-resilient investments and green capital market instruments.