ISLAMABAD: The Asian Development Bank (ADB) has approved $500 million in contingent disaster financing for Pakistan to help the country respond to natural disasters and limit their economic and fiscal impact.
The financing facilities, approved under the bank’s policy-based lending, will provide prompt budget support following eligible disaster events.
Floods, earthquakes and other disasters cause Pakistan estimated average annual losses of $2 billion, according to the ADB.
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 from disasters, while women and girls are disproportionately affected.
The second subprogramme of the Climate and Disaster Resilience Enhancement Program supports reforms aimed at strengthening disaster preparedness and risk management in Pakistan.
It also seeks to integrate resilience measures into the country’s development planning and investment, strengthen its disaster risk financing framework and improve the availability of funds 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.
Fan said the programme would support Pakistan in implementing reforms to build resilience against future disasters.
