The Asian Development Bank (ADB) has approved $500 million in disaster financing for Pakistan. The funding will help the country respond quickly to floods, earthquakes, and other natural disasters. The financing comes under ADB’s policy-based lending through its Contingent Disaster Financing (CDF) facilities. It will provide immediate budget support after eligible disasters. The funding aims to limit economic damage and reduce pressure on government finances.
Pakistan faces an estimated $2 billion in average annual losses from natural disasters. The 2022 floods alone caused $14.9 billion in direct damage and $15.2 billion in economic losses. The disaster also pushed up to 9.1 million people into poverty.
Poor and rural communities often face greater difficulties recovering from such events. Women and girls also experience a disproportionate impact during disasters.
The second subprogram of ADB’s Climate and Disaster Resilience Enhancement Program will support key reforms. These reforms aim to improve disaster preparedness and strengthen risk management across Pakistan. They will also bring climate resilience into development planning and investment.
Furthermore, the program will strengthen Pakistan’s disaster risk financing framework. This will improve access to funds when disasters occur. As a result, the country will have better financial support to manage future emergencies.
ADB Country Director for Pakistan Emma Fan said vulnerable communities often suffer the greatest losses during disasters. She stressed that better preparation can protect lives and livelihoods. It can also reduce economic damage and protect Pakistan’s development progress.
The program supports Pakistan’s national priorities for disaster risk management. It also aligns with ADB’s wider commitment to strengthening resilience across Asia and the Pacific.
