Asian Development Bank approves $500 million contingent loan for Pakistan disaster preparedness
The Asian Development Bank approved up to $500 million in contingent disaster financing facilities for Pakistan on Wednesday. Furthermore, the Manila-based financial institution confirmed that the funding provides rapid budget support immediately following natural disaster events. Consequently, state economic planners can access emergency liquidity to mitigate sudden fiscal and macroeconomic…
The Asian Development Bank (ADB) has approved a $500 million loan to help Pakistan bolster its disaster preparedness. The funds will serve as contingency disaster financing (CDF) to respond to eligible disasters and mitigate their economic and fiscal impacts. ADB spokesperson stated that floods, earthquakes, and other disasters annually cause an estimated $2 billion in losses for Pakistan.
The 2022 floods alone resulted in $14.9 billion in direct damage and $15.2 billion in economic losses, pushing up to 9.1 million people into poverty.
ADB's Climate and Disaster Resilience Enhancement Programme aims to improve disaster preparedness and risk management, integrating resilience measures into Pakistan's development planning and investment. The second subprogram of this initiative strengthened Pakistan's disaster risk financing framework and enhanced financing availability following disaster events.
ADB Country Director for Pakistan, Emma Fan, emphasized the importance of investing in preparedness to protect lives and livelihoods, minimize economic losses, and preserve the development gains Pakistan has made. This program aligns with Pakistan's disaster risk management priorities and ADB's commitment to supporting resilience initiatives across Asia and the Pacific.
In 2024, ADB also approved a $500 million policy-based loan to support climate change and disaster risk reduction and resilience in Pakistan. A report by the Jinnah Institute in May highlighted persistent governance failures and weak community-level systems as major obstacles to Pakistan's ability to prepare for and respond to climate disasters.
The report called for urgent reforms to build long-term resilience across vulnerable districts, especially after the devastating floods of 2025, which submerged entire districts, displaced millions, and obliterated livelihoods, revealing significant gaps in preparedness despite years of policy frameworks, institutional reforms, and international commitments.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
