- The loan was approved under the Disaster and Climate Resilience Strengthening Plan.
- CDREP to increase overall investment in disaster risk reduction.
- Pakistan is among the countries most vulnerable to climate change in Asia
The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support climate change, disaster risk reduction and resilience in Pakistan.
The Climate and Disaster Resilience Enhancement Program (CDREP) will strengthen Pakistan’s institutional capacity for planning, preparedness and response; Increase overall investment in disaster risk reduction and climate resilience; And support the expansion of disaster risk financing using a multi-layered approach, according to the press release issued by the Asian Development Bank on Tuesday.
Pakistan is one of the most vulnerable countries to climate change and disasters caused by natural hazards in Asia and the Pacific.
Average losses from disaster events exceed $2 billion annually.
Women and other vulnerable groups are disproportionately affected by climate change and disaster events.
“This program builds on the long-standing work of the ADB in Pakistan to understand and reduce climate and disaster risks and support effective disaster response,” said ADB Director General for Central and West Asia, Yevgeny Zhukov.
“We are proud to support an integrated and comprehensive approach to climate and disaster risk management, including a range of disaster risk financing instruments to provide appropriate and timely financing for disaster response,” Zhukov added.
CDREP supports strengthening capacity for disaster risk mapping and modeling for investment and development decisions.
It enhances coordination for disaster monitoring and response.
It also supports enhanced planning and prioritization of gender-sensitive and resilient public investments, including integrated flood risk management and nature-based solutions.
The program supports the mobilization of climate finance from public and private sources.
This includes issuing local green sukuks (Islamic bonds).
A key innovation of CDREP is the use of the Asian Development Bank’s Disaster Emergency Financing Option for the first time in the Central and West Asia region.
This will provide rapid budget support in the event of a disaster.
It will support the establishment of a solidarity fund to facilitate the uptake of risk transfer solutions such as agricultural insurance as well as support shock-responsive social protection to provide cash assistance in the event of a disaster.
The Asian Development Bank also approved a $1 million technical assistance grant to support the implementation of the programme.
Pakistan was one of the founding members of the Asian Development Bank.
Since 1966, the ADB has committed more than $52 billion in public and private sector loans, grants, and other financing to promote Pakistan’s inclusive economic growth and improve the country’s infrastructure, energy and food security, transportation networks, and social services.