Air pollution costs Pakistan nearly 6% of GDP, threatens foreign investment, says OICCI

Air pollution is costing Pakistan close to 6% of GDP each year and is adding to the country’s difficulty in attracting foreign investment, Profit by Pakistan Today reported, citing the Overseas Investors Chamber of Commerce and Industry (OICCI). The World Bank estimate covers environmental degradation, with air pollution its largest component; a separate estimate puts the combined cost of pollution, including lead exposure, at about 6.5% of GDP.

OICCI cited estimates of more than 248,000 premature deaths annually, while foreign direct investment fell 34% to $1.64 billion in FY2026 and total foreign investment dropped 74% to $451 million. Experts said pollution-related business disruption and environmental risks are increasingly relevant to investment decisions. A World Bank-backed $300 million Punjab programme targets a 35% reduction in PM2.5 over a decade, including plans for 600 electric buses and 5,000 super seeders.