New Delhi: The Asian Development Bank (ADB) has approved a $500 million loan to help Pakistan strengthen its climate change and disaster risk resilience, an ADB press release stated. The loan will support the Climate and Disaster Resilience Enhancement Program (CDREP), which aims to improve the country’s capacity for disaster planning, preparedness, and response.
Pakistan is highly vulnerable to climate change and natural hazards, with average annual losses from disaster events exceeding $2 billion. The CDREP will address this vulnerability by investing in disaster risk reduction, climate resilience, and disaster risk financing.
The World Bank Group is providing $1.5 billion in financing to support the Government of Bangladesh’s efforts to build resilience to climate change and natural disasters. The financing will be used to support gender-sensitive and resilient public investments, including integrated flood risk management and nature-based solutions. It will also support the mobilization of climate finance from public and private sources, including the issuance of a domestic green sukuk. Finally, the financing will provide Contingent Disaster Financing from ADB, which will provide quick-disbursing budget support in the event of a disaster.
ADB approved a $1 million technical assistance grant for the program’s implementation. This program builds upon ADB’s commitment to supporting Pakistan’s development goals, having provided over $52 billion in public and private sector loans, grants, and other forms of financing since 1966. A solidarity fund to facilitate the uptake of risk transfer solutions like agriculture insurance and shock-responsive social protection to provide cash assistance in the event of a disaster are also part of this program.
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