Manila: The Asian Development Bank (ADB) has approved a $500 million policy-based loan aimed at enhancing climate change and disaster resilience in Pakistan. The loan will support the Climate and Disaster Resilience Enhancement Program (CDREP), which is designed to bolster Pakistan’s capacity for disaster planning, preparedness, and response, while promoting investment in disaster risk reduction and climate resilience.
According to Asian Development Bank, the program will focus on improving disaster risk mapping and modeling for better investment and development decisions. It aims to enhance coordination for disaster monitoring and response and prioritize gender-sensitive and resilient public investments, including integrated flood risk management and nature-based solutions. The program also plans to mobilize climate finance from both public and private sources, with innovative measures such as the issuance of a domestic green sukuk and the application of ADB’s Contingent Disaster Financing option for swift budget support during disasters.
Pakistan, one of the most vulnerable countries to climate change and natural disasters in Asia and the Pacific, suffers average annual losses exceeding $2 billion due to these events. Women and other vulnerable groups are particularly affected. The ADB’s initiative aims to address these challenges by supporting a comprehensive approach to climate and disaster risk management, which includes a range of disaster risk financing instruments for timely disaster response.
The program’s additional features include establishing a solidarity fund to promote risk transfer solutions like agriculture insurance and supporting shock-responsive social protection to provide cash assistance during disasters. ADB has also approved a $1 million technical assistance grant to facilitate the program’s implementation.
As a founding member of ADB, Pakistan has received over $52 billion from the bank since 1966 to support inclusive economic growth and improve infrastructure, energy, food security, transport networks, and social services. ADB remains committed to building a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, with continued efforts to eradicate extreme poverty.