IMF issues warning over Pakistan’s climate vulnerability

The International Monetary Fund (IMF) has warned that Pakistan remains highly exposed to climate shocks, including recurrent floods, intensifying heatwaves, and accelerated glacial melt, with implications for macro fiscal stability, livelihoods, and poverty reduction.

Report noted that recent disasters caused multibillion-dollar damage and widespread displacement, echoing vulnerabilities seen during the catastrophic 2022 floods. Consequently, authorities must accelerate adaptation and resilience measures ahead of a possibly harsher 2026 monsoon.

Moreover, the IMF highlighted government steps to strengthen preparedness. Prime Minister Shehbaz Sharif has endorsed a national flood preparedness plan to improve coordination between federal and provincial agencies, upgrade early warning systems, and restore climate-damaged infrastructure. At the same time, the Ministry of Climate Change is building a digital monitoring and evaluation system tied to the 2023 National Adaptation Plan, with completion expected by mid-2026.

In addition, Pakistan is preparing a National Glacier Preservation Strategy to improve glacier monitoring and include glacier data in national water planning. The IMF stressed that Pakistan hosts the largest concentration of non-polar glaciers, increasing exposure to glacier-related risks such as glacial lakes outburst floods and long-term water stress.

Furthermore, under the Resilience and Sustainability Facility, the government now requires climate risk assessments for public investment projects above Rs7.5 billion and has committed to directing at least 30 percent of infrastructure spending toward climate-resilient or climate-related projects. Financial regulators are also integrating climate considerations: the State Bank of Pakistan will implement the Pakistan Green Taxonomy from 2026, and the Securities and Exchange Commission has rolled out phased climate disclosure rules for listed firms.