The funding will provide immediate budgetary support in the event of natural disasters and help reduce the pressure on Pakistan’s economy and public finances.
According to the ADB, Pakistan suffers an average of $2 billion in annual economic losses due to floods, earthquakes and other natural disasters.
The devastating 2022 floods alone caused an estimated $14.9 billion in direct physical damage and $15.2 billion in economic losses. The disaster also pushed approximately 9.1 million people into poverty.
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The ADB assistance has been approved under the second phase of its Climate and Disaster Resilience Enhancement Programme.
The programme aims to strengthen Pakistan’s disaster preparedness, improve risk management and integrate disaster resilience measures into development planning.
It will also help improve access to financial resources following natural disasters and strengthen the country’s disaster risk financing system.
ADB Country Director for Pakistan, Emma Fan, said vulnerable and disadvantaged communities were usually the hardest hit during natural disasters.
She emphasised that investing in preparedness could save lives, protect livelihoods, reduce economic losses and safeguard development gains.
Fan added that the programme would support Pakistan in implementing key reforms and building a safer and more resilient future.
The initiative is also aligned with Pakistan’s national priorities for disaster risk reduction and the ADB’s broader commitment to strengthening climate and disaster resilience across Asia and the Pacific.
Pakistan remains highly vulnerable to climate-related disasters, particularly floods and extreme weather events, making emergency financing and disaster preparedness critical for protecting communities and economic stability.
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