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From Poverty Gains to Climate Losses: What ESCAP’s Data Reveal About South Asia

by R. Suryamurthy
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South Asia is emerging as one of the most consequential battlegrounds for the global 2030 Agenda, with new data showing that hard-won social and economic gains are being steadily undermined by climate stress, inequality and weak institutional progress.

According to the Asia and the Pacific SDG Progress Report 2026 released by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the Asia-Pacific region is on course to miss 88 per cent of measurable SDG targets, with South Asian countries facing some of the steepest structural risks.

While the subregion has made measurable advances in poverty reduction, health outcomes and basic infrastructure since 2015, ESCAP’s indicators show regression or stagnation across climate action, biodiversity, inequality, urban resilience and institutional capacity—areas that are increasingly decisive for long-term development.

India: scale masks slowing momentum

In India, the region’s largest economy, SDG progress reflects a familiar pattern of scale-driven gains offset by environmental and social stress. ESCAP data show continued improvement on SDG 1 (No Poverty), SDG 3 (Good Health and Well-being) and SDG 9 (Industry, Innovation and Infrastructure), supported by rising electricity access, declining maternal and under-five mortality, and near-universal mobile network coverage.

However, India records regression on SDG 13 (Climate Action), with total greenhouse gas emissions continuing to rise, and on SDG 11 (Sustainable Cities), where disaster-related damage to infrastructure and service disruptions have increased. Progress on SDG 10 (Reduced Inequalities) remains slow, with labor income’s share of GDP declining and informal employment entrenched, underscoring the challenge of translating macroeconomic growth into inclusive outcomes.

Pakistan: climate shocks erode development gains

For Pakistan, ESCAP’s data highlight acute vulnerability to climate and disaster risks. While the country has made gradual progress on poverty reduction and access to basic services under SDG 1 and SDG 6 (Clean Water and Sanitation), these gains are increasingly offset by high disaster mortality and economic losses, particularly from floods.

Pakistan shows regression on SDG 13 (Climate Action) and SDG 11, with repeated shocks damaging infrastructure and livelihoods. Progress on SDG 8 (Decent Work and Economic Growth) is uneven, marked by persistent informal employment and limited improvement in youth employment indicators. ESCAP also flags slow movement on SDG 16 (Peace, Justice and Strong Institutions), compounded by significant data gaps that obscure governance and justice outcomes.

Bangladesh: strong social indicators, rising environmental strain

Bangladesh stands out in South Asia for relatively strong performance on social indicators. ESCAP data show continued improvements in maternal and child mortality, reductions in extreme poverty, and expanded access to water, sanitation and electricity.

Yet these gains are increasingly threatened by environmental regression. Bangladesh records negative trends on SDG 13 and SDG 14 (Life Below Water), reflecting rising climate exposure and pressure on coastal and marine ecosystems. Urban resilience indicators under SDG 11 show worsening disaster impacts, while progress on SDG 10 remains slow, indicating that income and opportunity gaps persist despite overall growth.

Sri Lanka: debt stress constrains SDG acceleration

In Sri Lanka, ESCAP’s assessment reflects the economic strain of recent crises. The country continues to perform relatively well on health and education indicators, with steady progress on SDG 3 and SDG 4 (Quality Education).

However, regression is evident on SDG 17 (Partnerships for the Goals), particularly on debt sustainability, as rising debt service burdens divert fiscal space away from social and environmental investment. Progress on SDG 8 and SDG 10 is sluggish, while climate and disaster-related indicators show increased vulnerability, highlighting how macroeconomic instability can stall SDG momentum even where human development foundations are strong.

Nepal: development advances undercut by disaster risk

For Nepal, ESCAP data show steady improvements in poverty reduction, health outcomes and access to basic services since 2015. The country has made gains on SDG 1, SDG 3 and SDG 6, reflecting expanded social protection and service delivery.

At the same time, Nepal faces pronounced regression on disaster-related indicators under SDG 11 and SDG 13. High exposure to earthquakes, floods and landslides has driven up deaths, displacement and economic losses, eroding development gains. Limited progress on SDG 8 and persistent data gaps on SDG 16 further constrain policy effectiveness.

Bhutan: environmental strengths, economic limits

Bhutan continues to outperform many regional peers on environmental indicators, with relatively stronger outcomes on SDG 15 (Life on Land) due to conservation-focused policies. ESCAP data also show progress on health and basic services.

However, Bhutan’s small economic base limits acceleration on SDG 8, with slow progress on employment diversification and productivity. Data gaps on gender equality and institutions persist, mirroring wider South Asian challenges and underscoring the need for stronger statistical systems even in better-performing economies.

Maldives: high income, high climate exposure

In the Maldives, ESCAP’s data reveal a sharp contrast between income levels and sustainability risks. The country performs strongly on SDG 1 and SDG 3, reflecting high per capita income and access to services.

Yet Maldives faces severe regression on SDG 13 and SDG 14, with climate change and ocean degradation posing existential threats. Rising disaster risk, coastal erosion and dependence on climate-sensitive tourism also affect SDG 8, while high exposure to external shocks underscores the fragility of development gains without deeper resilience investment.

A narrowing window

ESCAP concludes that South Asia’s challenge is no longer one of basic growth, but of rebalancing development. Without faster progress on climate action, inequality reduction, urban resilience and institutional capacity, the subregion risks missing most SDG targets despite continued gains in health, poverty reduction and infrastructure.

With five years remaining to 2030, the report warns that incremental reforms will be insufficient. For South Asia, the choice is increasingly stark: integrate sustainability and inclusion into the core of development strategies—or see decades of progress steadily undone by climate, inequality and institutional strain.

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