Islamabad, November 19, 2024 – Pakistan and the Asian Development Bank (ADB) formalized a $500 million loan agreement on Tuesday under the Climate and Disaster Resilience Enhancement Program (CDREP), signaling a significant step toward addressing the country’s climate challenges and disaster vulnerabilities.
The agreement was signed following approval by Federal Minister for Economic Affairs Ahad Cheema, according to a press release issued by the Economic Affairs Division (EAD). Secretary of the Ministry of Economic Affairs, Dr. Kazim Niaz, and ADB Country Director, Ms. Emma Fan, represented their respective parties in the signing ceremony, which was attended by senior officials from both the Pakistani government and ADB.
Minister Cheema emphasized the importance of the agreement, noting that it demonstrates Pakistan’s commitment to prioritizing climate change mitigation and advancing disaster risk financing through innovative, risk-layered approaches.
The CDREP has been designed to strengthen Pakistan’s capacity for climate change adaptation and disaster risk management. Highlighting the program’s significance, Secretary Dr. Kazim Niaz and ADB Country Director Ms. Emma Fan explained that the initiative adopts a programmatic approach, aiming to build institutional resilience and address vulnerabilities caused by natural disasters and climate impacts.
The core objectives of the program include improving disaster risk mapping, enhancing response coordination, and promoting gender-sensitive public investments. By focusing on these areas, the program seeks to bolster Pakistan’s ability to mitigate climate-related risks and respond effectively to disasters.
Incorporating a risk-layered financing strategy, the CDREP aims to provide comprehensive solutions for disaster preparedness and recovery. This includes investments in infrastructure, technology, and capacity-building initiatives to better equip institutions to handle the escalating impacts of climate change.
The agreement comes at a critical time as Pakistan faces increasing frequency and intensity of climate-induced disasters, from floods to extreme weather events. Strengthening disaster risk management frameworks is expected to not only safeguard communities but also promote sustainable development in vulnerable regions.
Ms. Emma Fan reiterated ADB’s commitment to supporting Pakistan’s climate resilience efforts. She stated that the CDREP reflects a shared vision between Pakistan and ADB to enhance sustainability, equity, and preparedness in the face of climate challenges.
This partnership underscores a renewed focus on sustainable development and marks a vital collaboration between Pakistan and ADB to mitigate the devastating impacts of climate change and natural disasters on the nation’s economy and communities.
