Islamabad, Oct 29: ADB Approves $500 Million Loan to Boost Climate Resilience in Pakistan. A $500 million policy-based loan has been authorized by the Asian Development Bank (ADB) to help Pakistan reduce the risk of disasters and increase resilience to them.
The Climate and Disaster Resilience Enhancement Program (CDREP) will boost inclusive investment in disaster risk reduction and climate resilience, support the expansion of disaster risk financing through a risk-layered approach, and fortify Pakistan’s institutional capacity for planning, preparedness, and response.
One of the nations in Asia and the Pacific most at risk from natural disasters and climate change is Pakistan. Every year, disaster-related losses average more than $2 billion. Disasters and climate change disproportionately harm women and other vulnerable groups.
ADB Director General for Central and West Asia Yevgeniy Zhukov stated, “This program builds on ADB’s longstanding work in Pakistan to understand and reduce climate and disaster risks and support effective disaster response.” “We are proud to support a portfolio of disaster risk financing instruments for timely and adequate funding for disaster response, as well as an integrated and comprehensive approach to climate and disaster risk management.”
For the purpose of making decisions about investments and development, the initiative supports increased capability for mapping and modeling disaster risk. It improves cooperation for disaster response and monitoring. Gender-sensitive and resilient public initiatives, such as integrated flood risk management and nature-based solutions, should be better planned for and prioritized.
The initiative encourages both governmental and private sources of climate money to be mobilized. A domestic green sukuk (Islamic bond) is one example of this. Utilizing ADB’s Contingent Disaster Financing option for the first time in Central and West Asia is one of the program’s major innovations. In the case of a calamity, this will enable budget support to be disbursed quickly.
In order to encourage the use of risk transfer options like crop insurance, the initiative will assist in the creation of a solidarity fund. In the event of a calamity, the program also supports shock-responsive social protection, which provides financial aid. A $1 million technical assistance grant has also been approved by ADB to help with the program’s execution.
