ADB approves $500mn for Pakistan disaster resilience
The Asian Development Bank (ADB) has approved contingent disaster financing (CDF) facilities totalling $500 million under its policy-based lending to help Pakistan to withstand and respond to disasters.
The CDF will provide prompt budget support following eligible disaster events to help reduce the economic and fiscal impacts, read a statement on Wednesday.
According to the statement, 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,” read the statement.
To help protect communities and reduce the impact of future disasters, 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.
ADB said that 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.
Last month, ADB, in its Asia-Pacific Climate Report 2026, said that Pakistan could see around 1.48 million people exposed to annual coastal flooding by 2100, as rising sea levels, coastal erosion and saltwater intrusion threaten communities, infrastructure and livelihoods.
The report identifies Pakistan among the countries facing growing coastal risks and warns that development in flood-prone areas, combined with intensifying climate hazards, could significantly increase future economic and social costs.