ISLAMABAD: Pakistan and the Asian Development Bank (ADB) signed a $500 million loan agreement on Tuesday to support the Climate and Disaster Resilience Enhancement Programme (CDREP). The program aims to strengthen the country’s ability to withstand and recover from natural disasters and environmental crises.
The CDREP will enhance Pakistan’s institutional capacity for planning, preparedness, and response, while promoting inclusive investments in disaster risk reduction and climate resilience. It will also support the scaling up of disaster risk financing through a risk-layered approach.
The loan agreement was signed following approval from Federal Minister for Economic Affairs, Ahad Cheema, as per a press release from the Economic Affairs Division (EAD). Dr. Kazim Niaz, Secretary of the Ministry of Economic Affairs, and ADB Country Director, Ms. Emma Fan, represented their respective organizations at the ceremony, which was attended by senior officials from both the government and the ADB.
Minister Cheema emphasized that the agreement highlights Pakistan’s commitment to prioritizing climate change adaptation and enhancing disaster risk financing. “This program is designed to strengthen Pakistan’s capacity for climate change adaptation and disaster risk management, addressing the country’s vulnerabilities to natural disasters and climate impacts,” he said in a joint statement with Ms. Fan.
This agreement follows the recent launch of Pakistan’s first National Climate Finance Strategy (NCFS) to address the challenges posed by global warming. The strategy, launched at the COP29 conference in Baku on November 15, focuses on mobilizing funds for climate mitigation and adaptation, attracting international financing, and improving domestic financial systems.
Romina Khurshid Alam, Prime Minister’s Coordinator on Climate Change, expressed pride in launching the NCFS, calling it a significant step toward a sustainable, climate-resilient future. “The strategy outlines a path to bridge the significant climate finance gap facing Pakistan, which we estimate at $348 billion by 2030,” she said.
Pakistan, ranked among the top 10 most climate-vulnerable countries, faced devastating losses in the 2022 floods, which caused $30 billion in damage and directly affected 33 million people.
