ISLAMABAD: The Asian Development Bank (ADB) has approved contingent disaster financing facilities totaling $500 million to help Pakistan withstand and respond to disasters, the bank announced.
The financing, provided under ADB's policy-based lending, will offer prompt budget support following eligible disaster events to help reduce economic and fiscal impacts.
Floods, earthquakes and other disasters cause Pakistan an estimated $2 billion in annual average losses. The 2022 floods alone caused $14.9 billion in direct damage and $15.2 billion in economic losses, pushing as many as 9.1 million people into poverty. Poor and rural communities have less capacity to recover, while women and girls are disproportionately affected, according to the bank.
The second subprogram of the Climate and Disaster Resilience Enhancement Program supports reforms to strengthen disaster preparedness and risk management and integrate resilience measures into Pakistan's development planning and investment. The program also strengthens Pakistan's disaster risk financing framework and improves the availability of financing following disaster events.
"When disaster strikes, it is often the most vulnerable communities that are hit hardest. Investing in preparedness can help protect lives and livelihoods, reduce economic losses, and safeguard the development gains Pakistan has worked hard to achieve," said ADB Country Director for Pakistan Emma Fan. "This program will support the country in implementing critical reforms to ensure a more resilient future."
The program is aligned with Pakistan's priorities for managing disaster risks and with ADB's commitment to supporting resilience initiatives across Asia and the Pacific.
ADB is a leading multilateral development bank supporting sustainable, inclusive and resilient growth across Asia and the Pacific. Founded in 1966, it is owned by 69 members, 50 of them from the region.
