Pakistan secures $500 million loan from ADB to strengthen its climate resilience
The Asian Development Bank (ADB) has
approved a $500 million policy-based loan to enhance Pakistan’s capacity for
climate change adaptation, disaster risk reduction, and resilience.
The loan, under ADB’s Climate and
Disaster Resilience Enhancement Program (CDREP), aims to bolster Pakistan’s
ability to prepare for and respond to disasters, increase investments in
climate resilience, and expand disaster risk financing using a layered
approach. The program focuses on building Pakistan's capacity for disaster risk
planning, modeling, and mapping, and aims to facilitate better coordination for
disaster response and monitoring. It also prioritizes gender-sensitive and
resilient public investments, including integrated flood risk management and
nature-based solutions.
Read More Officials
discuss climate change initiatives with senior bankers
"Pakistan faces significant
vulnerabilities to climate change, with annual disaster-related losses
exceeding $2 billion," ADB’s Director General for Central and West Asia
Yevgeniy Zhukov said. “This program integrates ADB’s longstanding work in
disaster risk management in Pakistan and supports a comprehensive approach to
climate resilience, including innovative disaster financing instruments.”
Key components of the program
include issuing a domestic green sukuk (Islamic bond) and implementing ADB’s
Contingent Disaster Financing option for the first time in Central and West
Asia. The program will also establish a solidarity fund for risk-transfer
solutions like agricultural insurance and support shock-responsive social
protection measures to deliver cash assistance during disasters.
Additionally, ADB approved a $1
million technical assistance grant to support the implementation of CDREP.
Read More Pakistan
is highly vulnerable to climate change: World Bank
Pakistan, a founding member of ADB,
has received over $52 billion in public and private sector support from the
bank since 1966 to drive inclusive economic growth and improve infrastructure,
energy, transport, and social services.
The ADB reaffirmed its commitment to
fostering a prosperous and resilient Asia and the Pacific, while continuing its
mission to eradicate extreme poverty across the region.
Source: ARY News