The Asian Development Bank (ADB) has proposed a fresh $250 million policy based loan to help Pakistan strengthen its ability to deal with climate change and natural disasters through reforms, stronger institutions and better disaster financing.
The proposed Climate and Disaster Resilience Enhancement Program (Subprogram 2) is currently under consideration and will be financed through ADB’s ordinary capital resources, including concessional lending. The Ministry of Finance and Revenue will lead the programme across the country.
According to the project document, the initiative is designed to improve Pakistan’s preparedness for disasters caused by natural hazards and the growing effects of climate change through three key areas.
The first focuses on strengthening institutions responsible for climate planning, disaster management and emergency response. The second aims to increase investment in projects that reduce disaster risks and improve climate resilience. The third seeks to expand disaster risk financing through a layered financing framework that can support faster recovery after emergencies.
ADB said the programme is aligned with Pakistan’s Vision 2025, the Resilient Recovery, Rehabilitation and Reconstruction Framework, the updated Nationally Determined Contribution, the National Climate Change Policy and the National Adaptation Plan.
The lender believes the programme will help reduce poverty by improving disaster preparedness, strengthening risk information systems and protecting livelihoods and public infrastructure through climate resilient investments.
It also aims to improve access to disaster financing and strengthen shock responsive social protection measures, allowing authorities to respond more quickly when disasters strike.
The programme has been classified under effective gender mainstreaming and will be implemented nationwide, with the Ministry of Finance and Revenue serving as the executing agency.