ADB proposes USD 250m policy-based loan for climate resilience

The Asian Development Bank (ADB) has proposed a new USD 250 million policy-based loan to support Pakistan's efforts to improve resilience against climate change and natural disasters.

 

The proposed Climate and Disaster Resilience Enhancement Program (Subprogram 2) is currently listed as a proposed project and will be financed through ADB's ordinary capital resources, including concessional lending. The Ministry of Finance and Revenue will serve as the executing agency for the nationwide programme.

 

According to ADB documents, the initiative is designed to strengthen Pakistan's disaster management capacity through three key areas: improving institutional planning and emergency response, increasing investment in climate and disaster resilience, and expanding disaster risk financing through a layered financing framework.

 

The programme is aligned with Pakistan's Vision 2025, the 4RF recovery framework, the updated Nationally Determined Contributions (NDCs), the National Climate Change Policy, and the National Adaptation Plan. It also supports ADB's broader development priorities related to poverty reduction, governance, gender equality, food security, and climate resilience.

 

ADB said the initiative aims to improve disaster preparedness and response systems, protect livelihoods and public infrastructure through climate-resilient investments, and strengthen financing and social protection mechanisms to enable faster recovery after future disasters.