Islamabad (Commerce Desk): The Asian Development Bank (ADB) has approved a $500 million loan for Pakistan to strengthen its capacity to deal with natural disasters and provide immediate financial assistance during emergencies.
According to the ADB, Pakistan suffers annual economic losses of approximately $2 billion due to natural disasters. The approved loan will enable the country to receive immediate budgetary support following disasters, while also improving systems for disaster prevention and risk management.
The bank said the programme would incorporate disaster resilience into Pakistan’s development planning, improve the availability of financial resources during emergencies and strengthen the country’s disaster risk financing system.
According to the ADB, floods, earthquakes and other natural disasters cause substantial economic losses in Pakistan. The 2022 floods alone caused direct losses of $14.9 billion, while 9.1 million people were pushed into poverty.
The bank has pointed out that poor and rural communities are the most severely affected by natural disasters, while women and girls also face a disproportionate share of their consequences.