Pakistan receives $500m from ADB to tackle climate challenges
The State Bank of Pakistan (SBP) has received $500 million from the Asian Development Bank (ADB) under the Climate Change and Disaster Resilience Enhancement Programme (CDREP), aimed at strengthening Pakistan’s resilience against natural disasters and climate change impacts.
The inflow will bolster the
country’s foreign reserves and provide greater import cover, helping to
stabilize the rupee. The funds will be reflected in SBP’s reserves data for the
week ending November 29, 2024, to be released on December 5. As of November 22,
SBP’s foreign exchange reserves stand at $11.42 billion, marking a $131 million
weekly increase, while the country’s total liquid reserves amount to $16.08
billion, with $4.66 billion held by commercial banks.
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approves $500 million loan to strengthen climate resilience in Pakistan
The $500 million loan, signed
earlier this month, aims to enhance Pakistan’s capacity for disaster planning,
preparedness, and response, promoting inclusive investments in disaster risk
reduction and climate resilience. It also supports disaster risk financing,
integrated flood risk management, and gender-sensitive public investments
through nature-based solutions.
ADB highlighted that Pakistan is
among the most vulnerable countries to climate change in Asia and the Pacific,
with average annual disaster-related losses exceeding $2 billion, disproportionately
affecting women and vulnerable groups.
In addition to the loan, ADB
approved a $1 million technical assistance grant to support the programme’s
implementation.
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emerges as the fifth largest beneficiary of ADB loans and grants
Furthering its climate resilience
efforts, Pakistan launched its first National Climate Finance Strategy (NCFS)
in November to mobilize funds for climate mitigation and adaptation. The
strategy, unveiled by Finance Minister Muhammad Aurangzeb and Prime Minister’s
Climate Change Coordinator Romina Khurshid Alam during COP29 in Baku, aims to bridge
a $348 billion climate finance gap by 2030.
“This marks a significant step in
our commitment to a sustainable, climate-resilient future,” said Alam,
emphasizing the need for increased climate-related investments, international
financing, and stronger domestic financial systems.
Source: Geo TV