Climate change and natural disasters: ADB proposes fresh USD250m policy-based loan

ISLAMABAD: The Asian Development Bank (ADB) has proposed a fresh USD 250 million policy-based loan to help Pakistan strengthen its resilience against climate change and natural disasters, with the programme focusing on institutional reforms, climate-resilient investments and disaster risk financing.

The proposed Climate and Disaster Resilience Enhancement Program (Subprogram 2), carrying project, is currently listed as “Proposed” and will be financed through ADB’s ordinary capital resources, including concessional lending. The Ministry of Finance and Revenue will execute the nationwide programme.

According to the project document, the programme aims to strengthen Pakistan’s capacity to manage disasters triggered by natural hazards and the growing impacts of climate change through a three-pronged approach.

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ADB said the programme would support strengthening institutional capacity for climate and disaster strategy, planning and emergency response; increasing investments in disaster risk reduction and climate resilience; and enhancing disaster risk financing through a risk-layered financing framework.

The lender noted that the proposed programme is aligned with Pakistan’s Vision 2025, the Resilient Recovery, Rehabilitation and Reconstruction Framework (4RF), the updated Nationally Determined Contribution (NDC), the National Climate Change Policy and the National Adaptation Plan.

It also supports ADB’s Country Partnership Strategy for Pakistan and Strategy 2030 priorities relating to poverty reduction, gender equality, climate resilience, food security and governance reforms.

ADB said the initiative is expected to reduce poverty and strengthen social resilience by improving disaster risk information, preparedness and response systems, promoting climate-resilient investments to safeguard livelihoods and public assets, and expanding disaster risk financing alongside shock-responsive social protection mechanisms for timely recovery after disasters.

The project has been classified under effective gender mainstreaming and is intended for nationwide implementation. The executing agency will be the Ministry of Finance and Revenue.

Copyright Business Recorder, 2026