$500 million ADB loan to support Pakistan’s fight against climate change

ISLAMABAD: The Asian Development Bank (ADB) has approved a $500 million loan to help Pakistan deal with climate change and improve disaster preparedness.

The Climate and Disaster Resilience Enhancement Programme (CDREP) is designed to strengthen the country’s ability to plan for and respond to disasters, boost investment in climate resilience, and improve disaster financing.

Pakistan faces significant risks from climate change, with disasters causing losses of over $2 billion annually. Women and vulnerable communities are often the most affected.

Yevgeniy Zhukov, ADB’s Director General for Central and West Asia, highlighted the importance of this programme in helping Pakistan better manage these risks and respond effectively to disasters.

The programme will enhance Pakistan’s disaster risk mapping and planning capabilities, ensuring that investment decisions are informed by better data.

It also promotes gender-sensitive public investments, such as flood management and nature-based solutions. A key feature is the introduction of ADB’s Contingent Disaster Financing option, which will provide quick budget support when a disaster strikes.

Other elements include setting up a solidarity fund to support agricultural insurance and providing cash assistance to those affected by disasters through shock-responsive social protection. ADB is also offering $1 million in technical assistance to support the programme’s implementation.

Since 1966, ADB has provided over $52 billion to Pakistan to support economic growth and improve areas like infrastructure, energy, food security, and transport. The bank continues to work toward a more resilient and sustainable future for Asia and the Pacific.

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