Rapid urbanization in Karachi, Pakistan, has resulted in increased impervious surfaces, leading to significant challenges, such as frequent flooding, urban heat islands, and loss of vegetation. These issues pose challenges to urban resilience, livability, and sustainability, which further demand solutions that incorporate urban greening and effective water management. This research uses remote sensing technologies and Geographic Information Systems (GISs), to analyze current surface treatments and their relationship to Karachi’s blue-green infrastructure. By following this approach, we evaluate flood risk and identify key flood-conditioning factors, including elevation, slope, rainfall distribution, drainage density, and land use/land cover changes. By utilizing the Analytical Hierarchy Process (AHP), we develop a flood risk assessment framework and a comprehensive flood risk map. Additionally, this research proposes an innovative Sponge City (SC) framework that integrates nature-based solutions (NBS) into urban planning, especially advocating for the establishment of green infrastructure, such as green roofs, rain gardens, and vegetated parks, to enhance water retention and drainage capacity. The findings highlight the urgent need for targeted policies and stakeholder engagement strategies to implement sustainable urban greening practices that address flooding and enhance the livability of Karachi. This work not only advances the theoretical understanding of Sponge Cities but also provides practical insights for policymakers, urban planners, and local communities facing similar sustainability challenges.