ADB Approves $500 Million to Boost Pakistan's Disaster Resilience

The Asian Development Bank (ADB) has approved $500 million in contingent disaster financing for Pakistan, aimed at strengthening the country's ability to withstand and recover from natural disasters. The financing, approved under ADB's policy-based lending framework, will provide prompt budget support following eligible disaster events, helping to mitigate their economic and fiscal impact.

The facilities are part of the second subprogram of the Climate and Disaster Resilience Enhancement Program, which supports reforms to improve disaster preparedness and risk management. According to ADB, floods, earthquakes, and other disasters cause Pakistan estimated average annual losses of $2 billion, with the 2022 floods alone resulting in $14.9 billion in direct damage and $15.2 billion in economic losses, pushing as many as 9.1 million people into poverty.

The program also focuses on integrating climate resilience measures into Pakistan's development planning and investment, strengthening the disaster risk financing framework, and improving access to funding after natural disasters. ADB noted that poor and rural communities have fewer resources to recover, while women and girls are disproportionately affected.

ADB Country Director for Pakistan Emma Fan emphasized that vulnerable communities often suffer the greatest consequences when disasters strike. She added that investing in preparedness can help protect lives and livelihoods, reduce economic losses, and safeguard the country's development gains.

The financing comes as Pakistan faces growing exposure to climate-related disasters. Last month, an ADB report warned that approximately 1.48 million people in Pakistan could be exposed to annual coastal flooding by 2100 due to rising sea levels, coastal erosion, and saltwater intrusion threatening communities, infrastructure, and livelihoods.