Asian Development Bank approves $500m loan to help Pakistan strengthen disaster preparedness

The Asian Development Bank approved disaster financing facilities of up to $500 million for Pakistan on Wednesday, Dawn reported. The funding is designed to provide rapid budget support after qualifying disasters, helping limit their economic and fiscal consequences.

ADB said disasters cause Pakistan average annual losses estimated at $2 billion. It cited the 2022 floods, which caused $14.9bn in direct damage and $15.2bn in economic losses, with as many as 9.1m people pushed into poverty.

The financing is part of a programme supporting reforms in disaster preparedness, risk management and development planning. ADB also approved a $500m policy-based loan for climate and disaster resilience in 2024, while a Jinnah Institute report said weak governance and local systems continue to hinder preparedness.