ADB Approves $500m Disaster Financing for Pakistan
ISLAMABAD: The Asian Development Bank (ADB) has approved $500 million in contingent disaster financing for Pakistan, to help the country withstand and respond to floods, earthquakes and other natural disasters.
In a statement issued on Wednesday, the Manila-based lender said the financing would provide prompt budget support following eligible disaster events, reducing their economic and fiscal impact. The money is not project funding: it is standby support, released to the budget after a qualifying disaster strikes.
Preparedness and risk reforms
The facilities form the second subprogramme of the bank’s Climate and Disaster Resilience Enhancement Program, which supports reforms to strengthen disaster preparedness and risk management and to weave resilience measures into Pakistan’s development planning and investment. The programme also strengthens the country’s disaster risk financing framework and improves the availability of funds in the aftermath of a disaster.
ADB Country Director for Pakistan Emma Fan said vulnerable communities often suffer the most when disasters strike, and the programme would help money reach the response faster.
A country that pays heavily for disasters
Pakistan is among the countries hardest hit by natural disasters. Floods, earthquakes and other calamities cause the country estimated average annual losses of $2 billion, according to the ADB. The 2022 floods alone caused $14.9 billion in direct damage and $15.2 billion in economic losses.
The bank’s Asia-Pacific Climate Report 2026 warned that around 1.48 million people in Pakistan could be exposed to annual coastal flooding by 2100. In 2024, the ADB approved a similar $500 million policy-based loan to support climate change and disaster risk reduction in the country.
