Pakistan Allocates $700 Million Annually to Climate Resilience Projects

Finance Minister Muhammad Aurangzeb announced that Pakistan is dedicating roughly US$700 million each year to climate‑related projects, part of a broader US$2 billion programme aimed at strengthening climate resilience.

He described climate change and rapid population growth as the country’s two greatest existential challenges, noting that recurring floods, heat waves and droughts place severe pressure on the economy. The 2022 floods were the worst on record, causing massive loss of life and infrastructure damage. In contrast, the 2025 floods, while still causing substantial infrastructure loss, resulted in far fewer casualties thanks to improved disaster preparedness and response coordinated by the National Disaster Management Authority (NDMA).

The minister emphasized a strategic shift toward domestic financing and green subsidies, moving away from fossil‑fuel‑focused subsidies toward incentives for renewable energy, energy‑efficient appliances, clean transport and other climate‑friendly choices, with the aim of making environmental protection affordable for ordinary citizens.