ADB Approves $500 Million Loan for Pakistan to Strengthen Climate and Disaster Resilience

Manila, Philippines – 29 October 2024 – In a major step ADB approves $500 million loan for Pakistan to enhance climate resilience and disaster preparedness, to support Pakistan’s efforts in reducing climate risks and strengthening disaster management. The Climate and Disaster Resilience Enhancement Program (CDREP) aims to fortify Pakistan’s ability to withstand and respond to natural disasters, a pressing concern for one of Asia’s most climate-vulnerable countries.
The funding will bolster Pakistan’s capacity for disaster planning, increase inclusive investments in climate resilience, and introduce innovative disaster risk financing solutions. Given that Pakistan suffers average disaster-related losses of over $2 billion annually, the ADB CDREP seeks to address these vulnerabilities by developing an integrated and comprehensive approach to disaster risk management.
“This program builds on ADB’s longstanding work in Pakistan to understand and reduce climate and disaster risks,” said Yevgeniy Zhukov, ADB Director General for Central and West Asia. “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.”
Enhanced Disaster Risk Mapping and Coordination
A key component of the CDREP is the strengthening of Pakistan’s disaster risk mapping and modeling capabilities. By improving these tools, the program will support better-informed investment and development decisions. Enhanced coordination for disaster monitoring and response will further strengthen Pakistan’s ability to mitigate the impact of natural hazards.
Gender-Sensitive and Resilient Public Investments
The program emphasizes the prioritization of gender-sensitive investments, recognizing that women and vulnerable groups bear the brunt of climate-related disasters. Investments will include integrated flood risk management and nature-based solutions to build a more resilient infrastructure.
Mobilization of Climate Finance

The program encourages climate finance mobilization from both public and private sectors, including the issuance of domestic green sukuk (Islamic bonds) to attract environmentally conscious investors. ADB’s introduction of its Contingent Disaster Financing (CDF) option for the first time in Central and West Asia allows for rapid budget support in the event of a disaster.
The program encourages climate finance mobilization from both public and private sectors, including the issuance of domestic green sukuk (Islamic bonds) to attract environmentally conscious investors. ADB’s introduction of its Contingent Disaster Financing (CDF) option for the first time in Central and West Asia allows for rapid budget support in the event of a disaster.

ADB Approves $500 Million Loan for Pakistan to Support Agricultural Insurance and Social Protection
The CDREP will help establish a solidarity fund to facilitate agriculture insurance, helping farmers protect their livelihoods against natural disasters. Additionally, the program supports shock-responsive social protection to provide cash assistance to vulnerable populations affected by disasters.
Alongside the $500 million loan, ADB has approved a $1 million technical assistance grant to support the effective implementation of CDREP initiatives. This program is part of ADB’s broader commitment to fostering a resilient, inclusive, and sustainable Asia-Pacific region.
ADB Longstanding Partnership with Pakistan
Since Pakistan joined ADB as a founding member in 1966, the institution has committed over $52 billion in loans, grants, and other financing to advance economic growth and improve Pakistan’s infrastructure, energy security, transport networks, and social services. This latest program underscores ADB’s commitment to helping Pakistan build a sustainable future while tackling some of the most significant challenges posed by climate change.
With this ambitious loan package, ADB continues to support Pakistan in its mission to become more resilient in the face of natural hazards, safeguarding communities, and enabling sustainable development.
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