ADB approves $500mn funding to strengthen Pakistan's disaster resilience

The Asian Development Bank has approved $500 million in contingent disaster financing for Pakistan, Business Recorder reported on Wednesday. The facilities are intended to provide budget support after qualifying disasters, helping the country respond and limit economic and fiscal damage.

The bank estimates that floods, earthquakes and other disasters cause Pakistan average annual losses of $2 billion. The statement noted that the 2022 floods brought $14.9 billion in direct damage and $15.2 billion in economic losses, while as many as 9.1 million people were pushed into poverty.

The financing forms part of the second phase of ADB’s Climate and Disaster Resilience Enhancement Program, which backs reforms to improve preparedness, risk management and disaster financing. ADB also cited a report estimating that around 1.48 million people in Pakistan could face annual coastal flooding by 2100.