| Islamabad: The Asian Development Bank (ADB) has approved a significant USD 500 million policy-based loan for Pakistan, aimed at bolstering climate change adaptation and disaster risk resilience across the country. The news was reported by a source on October 30.
Read: ADB commits USD 2.75 bn to Pak following IMF Loan Programme
As per details, through the newly launched Climate and Disaster Resilience Enhancement Program (CDREP), this funding seeks to strengthen Pakistan’s ability to prepare, respond, and adapt to climate challenges, ensuring a resilient and sustainable future.
The CDREP will focus on enhancing Pakistan’s institutional capacity in planning and readiness for climate-related disasters, improving disaster risk reduction investments, and expanding disaster risk financing using a risk-layered approach. In addition, the ADB has allocated a USD 1 million technical assistance grant to support the implementation of CDREP.
According to the ADB, Pakistan is one of the countries most affected by climate change and natural disasters in Asia and the Pacific, with an annual disaster loss average exceeding USD 2 billion. Highlighting ADB’s ongoing support for Pakistan, Yevgeniy Zhukov, ADB Director General for Central and West Asia, stated, “We are proud to support an integrated and comprehensive approach to climate and disaster risk management, including a portfolio of disaster risk financing instruments for timely and adequate funding for disaster response.”
Read: ADB approves grant to upgrade 900 km of flood-affected KP roads
The CDREP initiative will enhance disaster mapping and modeling capabilities, improve coordination in disaster monitoring, and prioritize gender-sensitive and resilient public investments. Specific projects include integrated flood risk management and the adoption of nature-based solutions to mitigate disaster impacts.
An important innovation in this program is the introduction of ADB’s Contingent Disaster Financing option for the first time in Central and West Asia. This will enable Pakistan to access quick disbursing funds for emergency response in the event of a disaster. Additionally, a solidarity fund will be established to support the development of risk-transfer solutions, such as agriculture insurance, which is critical for the nation’s agriculture sector.
Read: ADB pledges USD 2bn annual loan support to Pakistan
The program also promotes shock-responsive social protection measures to ensure swift cash assistance to affected populations during disasters. To further boost climate financing, Pakistan plans to issue a domestic green sukuk (Islamic bond) to attract both public and private investments, contributing to climate finance mobilization efforts.
With the CDREP, the ADB reinforces its commitment to aiding Pakistan in reducing climate risks, fostering sustainable development, and strengthening disaster resilience through innovative financing and preparedness initiatives. |
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