ISLAMABAD: The State Bank of Pakistan (SBP) announced on Thursday that it has received $500 million from the Asian Development Bank (ADB) as part of a loan for the Climate Change and Disaster Resilience Enhancement Programme (CDREP).
This loan, approved by the ADB last month, aims to bolster Pakistan’s capacity to mitigate climate change impacts and enhance disaster preparedness. The funds will be reflected in the SBP’s foreign exchange reserves for the week ending November 29, 2024, with details to be published on December 5, 2024, the central bank stated.
The CDREP initiative focuses on improving institutional capacity for disaster risk management, increasing investment in climate resilience projects, and scaling up disaster risk financing through a risk-layered approach.
Additionally, the ADB has granted $1 million in technical assistance to support the implementation of the program.
ADB highlighted Pakistan’s vulnerability to climate change and natural disasters, with annual disaster-related economic losses averaging over $2 billion. The CDREP will enhance disaster risk mapping and modeling, improve decision-making for development investments, and strengthen monitoring and response mechanisms.
The ADB, which has seven ongoing projects in Pakistan for 2024 and 16 planned for 2025, emphasized its commitment to fostering sustainable development and resilience in the country.
