ADB approves 500 mln USD loan for Pakistan to support climate resilience

ISLAMABAD, Oct. 30 (Xinhua) -- The Asian Development Bank (ADB) said Tuesday it has approved 500 million U.S. dollars in policy-based loan to support climate and disaster resilience efforts in Pakistan, said a statement.

The bank's Pakistan office said that the Climate and Disaster Resilience Enhancement Program will strengthen Pakistan's institutional capacity for planning, preparedness, and response.

According to the bank, the program will increase inclusive investment in disaster risk reduction and climate resilience and support the scale-up of disaster risk financing using a risk-layered approach.

The ADB added that Pakistan ranks among the most vulnerable countries to climate change and disasters, with average losses from disaster events exceeding 2 billion U.S. dollars annually.

"This program builds on the ADB's long-standing work in Pakistan to understand and reduce climate and disaster risks and support effective disaster response," said ADB Director General for Central and West Asia Yevgeniy Zhukov.

The bank added that the program aims to strengthen disaster resilience in Pakistan by advancing disaster risk mapping and modeling to guide development and investment decisions.

The program would further support a solidarity fund to promote risk transfer solutions, including agricultural insurance, and will implement shock-responsive social protections to provide cash assistance to those affected by future disasters, added the bank. ■