By Azam Tariq

Pakistan's forests generate ecosystem services valued at 11.48% of the country's gross domestic product (GDP), underscoring their economic importance despite continued pressure on forest resources and limited forest cover, according to the Pakistan Economic Survey 2025-26.

The survey highlights forests as a critical national asset that provides far more than timber and fuelwood. Their contribution extends to watershed protection, carbon sequestration, biodiversity conservation, soil preservation, climate regulation and support for agriculture and livelihoods.

According to the survey, the economic value of these ecosystem services is estimated at 11.48% of GDP, reflecting the substantial benefits forests provide to the national economy and environment.

Despite their importance, forests cover only about 4.7% of Pakistan's total land area. The survey notes that limited forest resources remain under pressure from deforestation, rapid land-use changes, population growth, rural poverty and heavy dependence on natural resources.

The report states that Pakistan loses around 11,000 hectares of forest area every year due to deforestation, posing challenges for biodiversity conservation and environmental sustainability.

Forests play an important role in protecting watersheds that support agriculture and hydropower generation. They also help reduce soil erosion, prevent land degradation and improve groundwater recharge, particularly in mountainous regions.

According to the survey, forests are increasingly recognized as an important tool in addressing climate change. They absorb carbon dioxide and enhance national efforts to reduce greenhouse gas emissions.

The report highlights the importance of forest resources for rural communities, many of which rely on forests for fuelwood, grazing, medicinal plants and other livelihood activities.

Pakistan's forest ecosystems also support wildlife habitats and contribute to biodiversity conservation across different ecological zones.

The survey notes that government programmes aimed at afforestation and ecosystem restoration are being carried out by the Ministry of Climate Change and Environmental Coordination in collaboration with provincial and territorial governments. Initiatives under the Green Pakistan Programme and provincial forestry projects seek to increase forest cover and restore degraded landscapes.

These efforts are intended not only to improve environmental conditions but also to strengthen climate resilience, reduce disaster risks and enhance ecosystem services.

According to the survey, climate-related challenges such as floods, droughts and extreme weather events have increased the importance of protecting natural ecosystems.

Healthy forests can help reduce the severity of floods by improving water absorption and stabilizing soil, while also contributing to long-term water security.

The report emphasizes that sustainable forest management remains essential for balancing environmental protection with economic and community needs.

As Pakistan pursues climate adaptation and environmental sustainability goals, policymakers are increasingly viewing forests as productive national assets rather than simply land resources.

The survey notes that preserving and expanding forest resources could generate substantial long-term economic, environmental and social benefits while supporting national climate commitments.

Although the forestry sector directly contributes only about 0.5% to GDP, the overall value of forest ecosystem services is estimated at 11.48% of GDP, highlighting the critical role forests play in Pakistan’s environmental sustainability and economic well-being.

Credit: INP-WealthPk