Pakistan gets $500 million from ADB for climate resilience
ISLAMABAD: Pakistan on Thursday received $500 million from the Asian Development Bank (ADB) under the Climate Change and Disaster Resilience Enhancement Program (CDREP), the central bank confirmed.
The amount will appear in the foreign exchange reserves of the State Bank of Pakistan (SBP) next week – which will be released on December 5, 2024 – and will help boost the country’s import cover and stabilize the currency, the SBP said in a statement. said in the statement.
Meanwhile, foreign exchange reserves increased by $131 million on a weekly basis, reaching $11.42 billion as of November 22.
Last month, the The Asian Development Bank (ADB) approved a $500 million policy-based loan aimed at supporting disaster risk reduction and climate resilience in Pakistan.
“Policy Based Loans It will strengthen Pakistan’s institutional capacity to plan, prepare and respond to climate disasters. The loan will program Increase inclusive investments in disaster risk reduction and climate resilience, and support the scaling of disaster risk financing using a risk-based approach. Based in the Philippines said.
TThat program supports improved capacity for disaster risk mapping and modeling for investment and development decisions. It enhances coordination for disaster monitoring and response.
“It supports better planning and prioritization of gender-sensitive and resilient public investments, including integrated flood risk management and nature-based solutions,” said the Philippines-based.
In addition to funding for cLimits and Resilience to Disastersthe Bank also approved a $1 million technical assistance grant to Pakistan to support program implementation.
According to the Asian lender, the program will support the establishment of a solidarity fund to facilitate access to risk transfer solutions such as agricultural insurance. The program also supports social security to respond to shocks by providing cash assistance in the event of a disaster.
According to the ADB report, Pakistan is one of the most vulnerable countries to climate change and disasters in Asia and the Pacific as annual average losses exceed $2 billion. The Bank’s report added that women and other vulnerable groups are disproportionately affected by climate change and natural disasters.
Pakistan also launched its first National Climate Finance Strategy (NCFS) in November with a strategy to mobilize funds for climate mitigation and adaptation efforts to address the growing challenges of global warming. The strategy focuses on increasing climate-related investment, attracting international financing and strengthening the domestic financial system.
