Pakistan’s vulnerability to climate change has once again been laid bare as devastating monsoon floods sweep across the country, while billions of dollars in promised climate finance remain undelivered. A recent Bloomberg report underscores the widening gap between global pledges and actual disbursements, exposing the grim reality faced by developing nations on the frontline of climate disasters.
The 2025 monsoon season has already proven catastrophic. Beginning earlier than usual on June 26, torrential rains and flash floods have killed nearly 900 people and injured more than 1,180, according to the National Disaster Management Authority (NDMA). Khyber Pakhtunkhwa has suffered the heaviest toll, with over 400 deaths in just three weeks, while thousands of homes in Swat Valley have been destroyed. Punjab, the agricultural heartland, has seen 46 deaths, nearly 3.9 million affected, and 1.8 million displaced as the Chenab, Ravi, and Sutlej rivers overflowed, inundating villages and farmland.
The NDMA’s tally of 883 deaths nationwide evokes memories of the catastrophic 2022 floods, which submerged one-third of the country, displaced 30 million people, and caused more than $35 billion in losses. Officials warn that the scale of destruction in 2025 could once again test Pakistan’s fragile economy and overstretched disaster response systems.
International agencies, including the UN Office for the Coordination of Humanitarian Affairs (OCHA), stress that flood-hit communities urgently need shelter, clean water, medical supplies, hygiene kits, and protection services. While the Pakistani authorities are leading relief efforts with UN support, Bloomberg’s analysis highlights a deeper structural issue: global climate finance pledges continue to lag far behind the needs.
After the 2022 disaster, international donors and institutions pledged around $11 billion for Pakistan. Yet, OCHA notes that less than half of that amount has actually been disbursed. The Ministry of Economic Affairs adds that while projects have been identified for nearly three-quarters of the pledged funding, the release of funds has been slow and inconsistent.
In recent weeks, the European Union committed $1.1 million in new aid, while the Asian Development Bank and the United Nations pledged $3 million and $600,000 respectively. However, such incremental contributions pale in comparison to the scale of Pakistan’s needs. The World Bank estimates that Pakistan requires $348 billion in climate investments through 2030, including $16 billion just for recovery from the 2022 floods.
UN Resident and Humanitarian Coordinator Mohamed Yahya emphasized financing as the single largest barrier. “The number one problem for Pakistan’s ability to do what it needs to do is the lack of financing,” he said. So far, about $4.5 billion has been disbursed, largely for housing, transport, and flood management projects. The ADB has provided $528 million, while the World Bank has directed about $1 billion into reconstruction and adaptation across Sindh, Balochistan, and Khyber Pakhtunkhwa, with another $600 million approved.
Globally, the climate adaptation funding shortfall is estimated at $187 billion annually, exacerbated by donor fatigue and competing fiscal pressures in advanced economies. Disputes between developed nations and emerging economies like China over burden-sharing have further slowed flows. Moreover, much of the financing is delivered as loans, intensifying debt risks for countries like Pakistan.
Domestic challenges compound the crisis. Finance Minister Muhammad Aurangzeb admitted in August that Pakistan has not developed enough “investable” projects to absorb pledged financing. Meanwhile, corruption, weak governance, and limited planning capacity hinder effective climate adaptation. Environmental experts, such as Imran Khalid in Islamabad, argue that stronger urban planning, transparent systems, and targeted community-level programs are essential to utilize funds effectively.
Pakistan’s national adaptation plan includes measures such as early warning systems, wetland restoration, and climate-resilient infrastructure. Recent steps include launching a remote sensing satellite with China for disaster monitoring and partnering with the UN to expand early warning systems in northern valleys. However, the sheer scale of destruction—82% higher rainfall than last year, nearly 900 deaths, mass displacement, and crop losses—illustrates how urgent action is.
“Without innovative finance solutions, Pakistan risks falling further behind in its fight against climate change,” said Zeeshan Salahuddin of Tabadlab. “The country must balance immediate disaster recovery with long-term adaptation, or its economic burden will continue to grow.”
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