‘Climate change a major economic risk’

Islamabad:Dr Shamshad Akhter, former Governor, State Bank of Pakistan, and Chairperson, Board of Directors, Pakistan Stock Exchange, citing that Pakistan incurred costs of $52.93 billion due to climate change since 1992, has said that climate change is a major economic risk.

Dr Shamshad was speaking at a Seminar on "Policy coherence for economic transformation" organised her by Sustainable Development Policy Institute (SDPI). Dr Shamshad emphasised the urgent need for integrated and well-coordinated economic policies. She said that policy coherence is fundamental for meaningful economic transformation. The devastating 2022 floods alone resulted in $16 billion in losses further demonstrating the country’s vulnerability.

Dr Shamshad stressed that Pakistan’s economic transformation must be underpinned by high-level political commitment and cross-sector coordination. She pointed out that an integrated framework, incorporating climate finance, energy transition and economic planning is critical to addressing Pakistan’s development challenges.

Speaking online from United Kingdom (UK), Dr Adeel Malik, Global Fellow, Economies of Muslim Societies, Oxford University, identified policy coherence, state interests and governance as key prerequisites for development. He pointed out that Pakistan possesses expertise in policy design but faces challenges in execution.

He also warned about the unregulated expansion of housing societies and the elite control over land distribution, terming it a “new tragedy of the commons.” He stressed the need for land reforms and an inclusive governance structure that prioritises long-term policy stability over short-term political gains.

Dr Ali Salman, Executive Director, Policy Research Institute of Market Economy (PRIME), critically assessed "Udaan Pakistan," a recent economic framework aimed at revitalising the economy.