The Asian Development Bank (ADB) has approved contingent disaster financing facilities of up to $500 million for Pakistan, providing the country with rapid budget support after eligible disaster events.
The Manila-based lender announced the approval on Wednesday. It said the funds are intended to reduce the economic and fiscal impact of disasters and to support the government’s response.
ADB estimated that floods, earthquakes and other disasters cost Pakistan about $2 billion in average annual losses. The 2022 floods alone caused $14.9 billion in direct damage and $15.2 billion in economic losses, and pushed as many as 9.1 million people into poverty.
The bank noted that poor and rural communities have less capacity to recover, and that women and girls are disproportionately affected. The financing follows the second subprogramme of the Climate and Disaster Resilience Enhancement Programme.
The subprogramme supported reforms to strengthen disaster preparedness and risk management, and to integrate resilience measures into development planning and investment. It also strengthens Pakistan’s disaster risk financing framework and improves the availability of funds after disasters.
ADB Country Director for Pakistan Emma Fan said the most vulnerable communities are often hit hardest by disasters. She said investing in preparedness helps protect lives and livelihoods, reduce economic losses and safeguard development gains.
She added that the programme will support the implementation of critical reforms for a more resilient future. ADB said the programme aligns with Pakistan’s disaster risk management priorities and with its own commitment to resilience initiatives across Asia and the Pacific.
In 2024, ADB approved a $500 million policy-based loan to support climate change action and disaster risk reduction in Pakistan. In May, the Jinnah Institute published a report stating that governance failures and weak community-level systems continue to hinder Pakistan’s preparation for and response to climate disasters.
It called for urgent reforms to build long-term resilience in vulnerable districts. The report followed the 2025 floods, which submerged entire districts, displaced millions of people and destroyed livelihoods.
