Pakistan moves for ADB $1bn climate support loan

The Pakistani federal government has conceptually approved securing a $1 billion budgetary support loan from the Asian Development Bank (ADB) to bolster policies against climate-related disasters. Chaired by Planning Minister Ahsan Iqbal, the Central Development Working Party granted approval, with the proposal now moving for final ADB sign-off. Half of the amount, $500 million, is anticipated before June, while the remaining $500 million will serve as contingency financing over five years for natural disasters. The funding aims to enhance disaster management systems, institutional capacity, and establish a comprehensive disaster risk financing framework, targeting Rs200 billion mobilization. This initiative is critical as Pakistan faces significant climate risks, requires substantial annual investment, and has identified weaknesses in disaster governance. Separately, a $40 million project was paused due to concerns over high procurement costs.