Govt seeks $1b ADB climate loan

The government of Pakistan has secured concept clearance for a $1 billion budget support loan from the Asian Development Bank (ADB) for climate disaster resilience policies. Chaired by Planning Minister Ahsan Iqbal, the Central Development Working Party (CDWP) approved the proposal under the Climate Disaster Resilience Enhancement Programme. The loan includes an immediate $500 million tranche, expected before June, to support the budget and foreign exchange reserves following substantial debt repayments. The remaining $500 million constitutes a Contingent Disaster Financing component, available over five years to provide financial aid in the event of disaster shocks. Pakistan is highly vulnerable to climate-induced disasters, requiring significant annual investment, and this lending aims to build institutional capacity and strengthen disaster governance. Meanwhile, a $40 million project was deferred due to exorbitant costs for furniture and laptops.