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ISLAMABAD: The Asian Development Bank (ADB) has approved a $500 million loan under the Climate and Disaster Resilience Enhancement Program (CDREP) to Pakistan, aimed at supporting disaster risk reduction and climate resilience.
According to the press release, the policy-based loan will strengthen Pakistan’s institutional capacity for planning, preparedness, and response to climate-induced disasters. The loan program will increase inclusive investment in disaster risk reduction and climate resilience, and support the scale-up of disaster risk financing using a risk-layered approach.
“The program supports enhanced capacity for disaster risk mapping and modeling for investment and development decisions. It enhances coordination for disaster monitoring and response. It supports enhanced planning and prioritization of gender-sensitive and resilient public investments, including integrated flood risk management and nature-based solutions,” the ADB said in a statement.
According to the Asian lender, the program will support the establishment of a solidarity fund to facilitate the uptake of risk transfer solutions such as agriculture insurance. The program also supports shock-responsive social protection to deliver cash assistance in the event of a disaster.
ADB Director General for Central and West Asia Yevgeniy Zhukov said this program builds on ADB’s longstanding work in Pakistan to understand and reduce climate and disaster risks and support effective disaster response.
“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,” he added.
According to the Asian Development Bank (ADB) report, Pakistan is one of the most vulnerable countries to climate change and disasters as average losses exceed $2 billion per year.
Finance Minister Muhammad Aurangzeb, in a meeting with ADB President Masatsugu Asakawa in Washington, expressed gratitude to the bank for approval of a $500 million policy-based loan to support climate resistance in Pakistan.
During the meeting, both officials discussed key areas of collaboration, including increasing Pakistan’s revenues, fostering regional cooperation, and ensuring the timely completion of the ADB office in Islamabad. The finance minister hoped for an early completion of the ADB’s country partnership framework
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