Finance Minister Muhammad Aurangzeb has warned that Pakistan faces intensifying climate risks as extreme weather events become more frequent and more destructive.

He said the 2022 floods caused losses of $30 billion, while this year’s flooding has again disrupted economic growth and is expected to cut nearly half a percentage point from GDP.

Speaking at the Global Development Finance Conference in Riyadh, Aurangzeb said Pakistan had managed immediate relief efforts through its own resources due to prudent economic policies. But he stressed that recovery and reconstruction cannot move forward without sustained external support.

He said an AI-powered early warning system is being activated at the National Emergency Centre, but Pakistan’s limited resources require strong international backing for climate-resilient projects.

Under a 10-year framework with the World Bank, Pakistan has secured a $20 billion partnership, with one-third of the financing allocated to climate initiatives. The country has also received the first $200 million tranche from the IMF’s Climate Resilience Fund.

Aurangzeb noted that access to global climate funds remains slow and cumbersome, adding that external financing and private-sector participation are essential to address mounting challenges.

The minister described the Reko Diq mining project as a potential “game changer” for the economy, saying its financial close has reached $7 billion.

Once operational in 2028, the project is expected to boost Pakistan’s exports by 10 per cent. Investors from the United States, China and GCC countries have shown strong interest in the venture, he added.

Aurangzeb said Pakistan seeks balanced relations with both the U.S. and China, while business partnerships will be a priority under CPEC Phase II. He reiterated that global cooperation is critical for countries like Pakistan that are on the frontline of climate change.