Pakistan signs $500m loan with ADB for climate resilience

Pakistan has signed a $500 million loan agreement with the Asian Development Bank (ADB) under the ‘Climate and Disaster Resilience Enhancement Program,’ aimed at strengthening the country’s capacity to manage climate change and natural disaster risks. 

The agreement, described as a “landmark” development, underscores Pakistan’s commitment to addressing the impacts of climate change, which has made the country one of the most vulnerable globally, according to the Global Climate Risk Index.

The program will focus on improving disaster risk management, including enhanced disaster risk mapping, response coordination, and gender-sensitive public investments. It also aims to bolster institutional frameworks for climate adaptation and disaster risk management.

Economic Affairs Minister Ahad Cheema stated the importance of the program in scaling up disaster risk financing and prioritizing climate change initiatives. The initiative is in line with Pakistan’s broader efforts to address climate vulnerabilities and is part of a global call for increased climate finance.

Prime Minister Shehbaz Sharif, speaking at the UN COP29 climate summit, highlighted the urgent need for developing countries to secure more climate financing. He noted that vulnerable nations require an estimated $6.8 trillion by 2030 to implement key climate actions defined by the Paris Agreement. 

The ADB loan agreement follows Pakistan's broader strategy to mitigate climate risks, including a $1 billion request for additional funding from the IMF's Resilience and Sustainability Trust, designed to support climate adaptation and clean energy transitions.