Prime Minister Shehbaz Sharif told the UN on Wednesday that Pakistan is backing its words with action, taking decisive steps to slash greenhouse gas emissions, but warned that piling up debt is no cure for the world’s problems.
“Debt, debt and more debt is not a solution,” the prime minister said at the Climate Summit 2025, urging richer nations to think of more sustainable ways to help vulnerable countries like Pakistan.
"Pakistan is already living through the harsh reality of climate change."
He said the government was pushing hard for renewable and green energy, backing projects in hydropower, solar, and even nuclear power to meet future needs without harming the planet.
"Pakistan will raise the share of renewables, including hydropower, to 62% of its energy mix by 2035 to strengthen climate resilience," the premier pledged, promising to boost the country’s nuclear power capacity to 1,200 megawatts by 2030.
Shehbaz pointed to a nationwide tree-planting drive, calling it a priority for protecting the environment and building resilience against climate shocks.
He added that the government was planning to run 30% of public transport on clean energy, in line with Punjab Chief Minister Maryam Nawaz’s drive to introduce electric buses.
He recalled that the 2022 floods alone caused losses of more than $30 billion. Yet, he pointed out, Pakistan’s contribution to global carbon emissions is negligible.
"Pakistan ranks among the countries most vulnerable to the impact of a warming planet, despite playing almost no role in causing the crisis," the PM stressed.
He urged the world to recognise this imbalance and to support nations facing the brunt of climate disasters.
Massive recent floods in Pakistan have struck both the rural heartland and industrial centres for the first time in decades, causing billions of dollars in damage while straining food supplies, exports and a fragile economic recovery.
The government had been optimistic about 2026, pencilling in 4.2% growth on the back of a rebound in farming and manufacturing after the economy was stabilised under a $7 billion International Monetary Fund bailout.
While waters have yet to recede in many districts, officials and analysts warn the hit could be deeper than in 2022, when a third of the country lay under water, due to dual shocks to agriculture and manufacturing.
Out on the plains, satellite images have traced the scale. A report from the agricultural monitoring initiative GEOGLAM estimates at least 220,000 hectares of rice fields flooded between August 1 and September 16.
State Bank of Pakistan said the deluge would cause a "temporary yet significant supply shock," and it put growth near the lower end of its 3.25–4.25% range.
It argued the shock would be less severe than the $30 billion disaster in 2022, with stronger forex reserves and lower interest rates offering some resilience.
But prices for wheat, sugar, onions and tomatoes have jumped, pushing a sensitive price index to a 26‑month high.
International Monetary Fund (IMF) resident representative Mahir Binici said an upcoming review of the Extended Fund Facility this week will assess whether the 2026 fiscal year budget and emergency provisions can meet the nation's needs. Iqbal called on the fund to "help us mitigate the damages".
Some economists say policymakers are underplaying the risks.
"The floods will increase the current account deficit by $7 billion. They are worse than the previous floods," former finance minister Hafeez Pasha said.
— Additional input from Reuters