The World Bank has warned that Pakistan could lose up to 20 percent of its GDP by 2050 if urgent and sustained climate action is not taken, calling for a multi-year financing framework to address worsening environmental and economic vulnerabilities.

Speaking at the Sustainable Development Conference organized by the Sustainable Development Policy Institute (SDPI), World Bank Representative in Pakistan Bolormaa Amgaabazar, said that climate change poses a severe threat to Pakistan’s economy, with recurring floods, droughts, and pollution causing billions in losses each year.

She revealed that Pakistan suffered $30 billion in damages during the 2022 floods, while the initial loss estimate from this year’s floods stands at $2.9 billion.

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The World Bank has also declared Pakistan’s annual government budget insufficient to tackle the scale of climate impacts and urged authorities to adopt a multi-year financing strategy.

Amgaabazar further announced that the World Bank will provide $20 billion to Pakistan over the next ten years under its Country Partnership Framework, aimed at supporting climate resilience, disaster recovery, and sustainable growth initiatives.

Expressing concern over air pollution in Lahore, she noted that pollution levels in the city are five to ten times higher than global safety standards, posing grave health and economic risks.

The World Bank reaffirmed its commitment to partnering with Pakistan in developing long-term strategies that combine environmental protection with economic stability.