ADB approves $500m disaster financing for Pakistan

The Asian Development Bank has approved $500 million in contingent disaster financing for Pakistan, a facility meant to release budget support quickly after a flood, earthquake or other eligible disaster.

The bank said in a statement on Wednesday that the money sits under its policy-based lending and is intended to soften the economic and fiscal shock of disasters. Floods, earthquakes and other hazards cost Pakistan an estimated $2 billion a year on average, according to the statement.

"The 2022 floods alone caused $14.9 billion in direct damage and $15.2 billion in economic losses, pushing as many as 9.1 million people into poverty," the statement said. "Poor and rural communities have less capacity to recover, while women and girls are disproportionately affected."

The financing is the second subprogram of the ADB's Climate and Disaster Resilience Enhancement Program. It supports reforms to strengthen disaster preparedness and risk management and to write resilience measures into Pakistan's development planning and investment. The programme also strengthens the country's disaster risk financing framework and improves how much money is available once a disaster has struck.

"When disaster strikes, it is often the most vulnerable communities that are hit hardest," said ADB Country Director for Pakistan Emma Fan. "Investing in preparedness can help protect lives and livelihoods, reduce economic losses, and safeguard the development gains Pakistan has worked hard to achieve." She said the programme would help Pakistan implement "critical reforms to ensure a more resilient future".

The bank said the programme aligns with Pakistan's own disaster risk priorities and with its resilience work across Asia and the Pacific.

Last month the ADB's Asia-Pacific Climate Report 2026 said about 1.48 million people in Pakistan could face annual coastal flooding by 2100, with rising sea levels, coastal erosion and saltwater intrusion threatening communities, infrastructure and livelihoods. The report warned that construction in flood-prone areas, combined with intensifying climate hazards, could sharply raise future economic and social costs.

Dawn reported the approval as a $500m loan for disaster preparedness.