Summary The Asian Development Bank approved a $500 million loan to strengthen Pakistan’s disaster response, providing immediate budget support after natural disasters and improving risk financing.
ISLAMABAD (Web Desk) – The Asian Development Bank (ADB) has approved a $500 million loan for Pakistan.
According to the ADB, natural disasters cost Pakistan about $2 billion every year. The loan will improve the country's ability to deal with such disasters and will provide immediate budgetary support after a disaster strikes.
The bank said floods, earthquakes and other disasters cause economic losses in Pakistan. The 2022 floods caused $14.9 billion in direct damage to the country and $15.2 billion in economic losses, while 9.1 million people were pushed into poverty.
The ADB noted that the poor and rural populations are the most affected by natural disasters, and that women and girls are disproportionately affected. The programme will improve disaster prevention and risk management, build disaster protection into Pakistan's development planning, improve the availability of financial resources after disasters, and strengthen the country's disaster risk financing system.
The ADB said preparation ahead of disasters can save lives and economic resources and reduce future economic losses. Protection of vulnerable groups affected by natural disasters in Pakistan will be ensured, and support will continue to boost the country's capacity to respond to disasters.
