ADB approves $500 million loan for Pakistan disaster response
The loan is meant to speed up emergency financing after floods and earthquakes, with the 2022 floods cited as a major example of losses.
The Asian Development Bank approved a $500 million loan for Pakistan on Wednesday, the bank said in a statement, Dunya News reported.
The programme is designed to improve the system for providing quick financial resources after floods, earthquakes and other natural disasters, the bank said.
The bank said Pakistan loses an average of $2 billion a year to natural disasters.
It cited the 2022 floods as causing direct losses of $14.9 billion and an overall economic loss of $15.2 billion.
The bank also said the floods pushed 9.1 million people into poverty.
Under the programme, Pakistan will be able to access immediate financing after floods and earthquakes, the bank said.
The bank said preparedness before disasters helps protect human lives and livelihoods.
The statement described the financing as part of a wider effort to help the government respond faster when disasters strike.
The Asian Development Bank is a multilateral lender owned by its member countries, and Pakistan is one of its long-standing borrowers.
The 2022 floods, which began in mid-2022, affected millions of people and damaged large areas of farmland and infrastructure across the country.
Pakistan is frequently hit by floods and other climate-related disasters, which have repeatedly strained its public finances.
