The Asian Development Bank (ADB) has approved $500 million in contingent disaster financing for Pakistan to strengthen the country’s ability to prepare for and respond to natural disasters.
The financing is designed to provide prompt budgetary support following eligible disaster events, helping the government manage emergency costs and reduce the economic and financial impact of natural calamities.
According to the ADB, Pakistan faces estimated average annual losses of around $2 billion due to floods, earthquakes and other natural disasters.
The bank highlighted the scale of the damage caused by the 2022 floods, which resulted in $14.9 billion in direct damage and $15.2 billion in wider economic losses. The disaster also pushed approximately 9.1 million people into poverty.
The ADB noted that poor and rural communities often face greater difficulties in recovering from natural disasters. Women and girls are also disproportionately affected.
The financing comes under the second subprogramme of the Climate and Disaster Resilience Enhancement Programme. It aims to improve disaster preparedness, strengthen risk management and incorporate climate resilience into Pakistan’s development planning and public investment.
The programme will also strengthen the country’s disaster risk financing system and improve the availability of funds after emergencies.
ADB Country Director for Pakistan Emma Fan said investment in disaster preparedness could help protect lives and livelihoods, reduce economic losses and safeguard development gains.
She added that the programme would support important reforms to help Pakistan build greater resilience against future disasters.
The initiative is aligned with Pakistan’s disaster risk management priorities and the ADB’s broader commitment to supporting climate resilience across Asia and the Pacific.
