ISLAMABAD: Pakistan has signed a $500 million loan agreement with the Asian Development Bank (ADB) under the Climate and Disaster Resilience Enhancement Programme.

The agreement, aimed at improving the country’s ability to respond to climate-related challenges and natural disasters, was signed on Monday by ADB Country Director Emma Fan and Pakistan’s Secretary of Economic Affairs, Kazim Niaz. The programme’s primary goal is to strengthen Pakistan’s institutional framework for climate change adaptation, disaster preparedness, and response. It is designed to enhance the country’s resilience to the growing impact of climate change, which has increasingly affected sectors such as agriculture, water resources, and infrastructure.

By supporting the development of comprehensive plans and strategies, the programme seeks to integrate climate resilience into Pakistan’s broader national development goals. One of the key components of the programme is the introduction of risk-based financing models that will allow Pakistan to access innovative funding mechanisms for disaster and climate-related projects. These models will help ensure that the country is better equipped to mobilize resources in times of climate emergencies and natural disasters. The programme also emphasizes inclusive investment, ensuring that vulnerable communities and regions are supported in their efforts to cope with climate risks.

Along with the $500 million loan, the ADB has also granted Pakistan an additional $1 million in technical assistance to help implement the programme. This funding will be used to provide support for capacity building, policy formulation, and the development of tools to better manage disaster risks. The ADB’s technical assistance will ensure that the government has the necessary expertise and resources to effectively roll out the programme’s objectives. Speaking at the signing ceremony, ADB Country Director Emma Fan emphasized the importance of building resilience to climate change and natural disasters, which are increasingly seen as major barriers to sustainable development in Pakistan.

She highlighted the ADB’s long-standing partnership with Pakistan and reaffirmed the bank’s commitment to supporting the country’s efforts in addressing climate vulnerabilities. Secretary of Economic Affairs Kazim Niaz expressed gratitude to the ADB for its continued support and noted that the loan agreement would significantly enhance Pakistan’s capacity to respond to climate-related challenges. He also stressed that the programme would play a vital role in ensuring sustainable growth and safeguarding communities vulnerable to the impacts of climate change. This agreement reflects Pakistan’s ongoing efforts to address climate risks and adapt to the growing challenges posed by climate change, with the ADB continuing to play a key role in supporting the country’s environmental and development goals.