ADB approves $500m loan for Pakistan to combat climate change

The Asian Development Bank (ADB) has approved a $500 million loan to Pakistan aimed at bolstering the nation’s efforts to mitigate climate change effects and enhance disaster preparedness, reported 24NewsHD TV channel Tuesday.

The funds are intended for ADB’s disaster relief programs and preventive measures, including building institutional capacity to better manage and respond to natural disasters.

This latest tranche forms part of an influx of external funding, with Pakistan having received $2.3 billion in the past three months to stabilize its economy. This includes the first instalment of $1 billion from a $7 billion International Monetary Fund (IMF) program, along with $1.23 billion from other international financial institutions and partner nations. The funds also comprise $250 million from bilateral partners, including China and Saudi Arabia, and $70 million in grants.

With expectations for a total of $19.39 billion in external aid for the fiscal year, the Pakistani government is working to secure economic resilience through international support. This includes anticipated contributions from Saudi Arabia, China, and the IMF, as Pakistan navigates the economic challenges and aims to strengthen its disaster management framework.