ISLAMABAD: Pakistan and the Asian Development Bank (ADB) on Tuesday signed a $500 million loan agreement for the Climate and Disaster Resilience Enhancement Program (CDREP) to strengthen the country’s resilience in the face of disasters caused by natural hazards and the impacts of environmental crises.
The program aims to strengthen Pakistan’s institutional capacity for planning, preparedness and response. It will help strengthen comprehensive investments in disaster risk reduction and climate resilience while supporting the expansion of disaster risk financing through a risk-based approach.
The agreement was signed after the approval of Federal Minister of Economic Affairs Ahed Cheema, according to a press release issued by the Department of Economic Affairs.
Secretary of the Ministry of Economic Affairs, Dr. Kazim Niaz, and ADB Country Director, Ms. Emma Fan, signed the loan agreement. The ceremony was attended by senior officials from the government and the multilateral lender.
While approving the agreement, Cheema said the signing of the agreement underscores Pakistan’s commitment to prioritize climate change initiatives and scale up disaster risk financing using a multi-layered approach.
“This program is designed as a programmatic approach and aims to strengthen Pakistan’s capacity to adapt to climate change and manage disaster risks, and address the country’s vulnerabilities to natural disasters and climate impacts,” the two officials said in a joint statement after signing the agreement.
Last week, Pakistan launched its first National Climate Finance Strategy (NCFS) to address the growing challenges caused by global warming through a strategy to mobilize funds for climate change mitigation and adaptation efforts. The strategy focuses on increasing climate-related investments, attracting international finance, and strengthening domestic financial systems.
Federal Finance Minister Muhammad Aurangzeb and Prime Minister’s Coordinator on Climate Change Romina Khurshid Alam jointly launched the NCFS program at the Pakistan Pavilion in Baku on the sidelines of the two-week UN-led Global Climate Change Conference (COP29) on November 15.
“It is a proud moment for us to be able to roll out Pakistan’s first-ever climate finance strategy, a major step in our commitment to a sustainable and climate-resilient future,” Romina Khurshid Alam, Assistant to the Prime Minister on Climate, said in her keynote address. At the launch party.
Explaining the strategy, she said that the Climate Finance Strategy sets out a path to closing the significant climate finance gap facing Pakistan – a gap that we estimate at $348 billion by 2030 to achieve our climate-resilient and low-carbon development goals.
Pakistan, ranked among the ten countries most vulnerable to climate risks, suffered a loss of $30 billion in floods in 2022, directly affecting 33 million people.