ISLAMABAD — ISLAMABAD: The Asian Development Bank (ADB) on Wednesday approved contingent disaster financing (CDF) facilities up to $500 million for Pakistan to withstand disasters and facilitate disaster response. In a statement, the Manila-based lending agency said the funds will provide prompt budget support following eligible disaster events to help reduce the resulting economic and fiscal impacts.
“Floods, earthquakes, and other disasters cause Pakistan an estimated $2 billion in annual average losses,” ADB noted, further recalling, “2022 floods alone caused $14.9bn in direct damage and $15.2bn in economic losses, pushing as many as $9.1m people into poverty.” “Poor and rural communities have less capacity to recover, while women and girls are disproportionately affected.” The lending agency said the second subprogramme of the Climate and Disaster Resilience Enhancement Programme supported reforms aimed at strengthening disaster preparedness and risk management, as well as integrating resilience measures into Pakistan’s development planning and investment, to reduce the impact of future disasters. “The programme also strengthens Pakistan’s disaster risk financing framework and improves the availability of financing following disaster events,” the statement added. “When disaster strikes, it is often the most vulnerable communities that are hit hardest.
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