ADB Financing: $500 Million Disaster Support Approved for Pakistan

The financing will provide prompt budgetary support following eligible disaster events, helping the country reduce their economic and fiscal impact, according to an ADB statement issued on Wednesday.

Pakistan suffers estimated average annual losses of $2 billion from floods, earthquakes and other disasters, the statement said.

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. Poor and rural communities have less capacity to recover, while women and girls are disproportionately affected, according to the ADB.

The second subprogram of the Climate and Disaster Resilience Enhancement Program aims to protect communities and reduce the impact of future disasters by supporting reforms in disaster preparedness and risk management. It also seeks to integrate resilience measures into Pakistan’s development planning and investment.

The ADB said the programme would strengthen the country’s disaster risk financing framework and improve access to funding following disaster events.

“When disaster strikes, it is often the most vulnerable communities that are hit hardest. Investing in preparedness can help protect lives and livelihoods, reduce economic losses, and safeguard the development gains Pakistan has worked hard to achieve,” said ADB Country Director for Pakistan Emma Fan.

She added that the programme would support Pakistan in implementing critical reforms to build a more resilient future.

The initiative is aligned with Pakistan’s priorities for managing disaster risks and the ADB’s broader commitment to supporting resilience efforts across Asia and the Pacific.

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Last month, the ADB warned in its Asia-Pacific Climate Report 2026 that around 1.48 million people in Pakistan could be exposed to annual coastal flooding by 2100. Rising sea levels, coastal erosion and saltwater intrusion pose growing threats to communities, infrastructure and livelihoods.

The report identified Pakistan among the countries facing increasing coastal risks, warning that development in flood-prone areas, combined with intensifying climate hazards, could significantly increase future economic and social costs.