Over the next three years, Pakistan will receive $2 billion in yearly assistance from the Asian Development Bank (ADB) to boost infrastructure development and climate-resilient activities.
According to government estimates, severe floods brought on by climate change destroyed several areas of Pakistan in 2022, killing 1,700 people, destroying large tracts of agricultural land, inundating 33 million people, and causing losses estimated to be $30 billion.
The rehabilitation of flood-affected communities in three provinces has been put on hold due to a $19.1 billion shortfall, as revealed by a report released last week by the Policy and Strategy Committee (PSC) and the Oversight Board on Post-Flood Reconstruction Activities. Out of the total estimated loss for post-flood reconstruction work, the country has only received $10.9 billion from international development partners.
The announcement was made during a meeting between President Asif Ali Zardari and ADB’s chairman Masatsugu Asakawa in Islamabad on Tuesday, according to a statement from the President’s House.
“[The Asian Development Bank President] reaffirmed the bank’s commitment to supporting infrastructure development and climate-resilient initiatives, and said that the ADB would provide $2 billion in annual assistance to Pakistan over the next three years,” the statement read.
The statement also said that the official was pleased with the recent indicators of the nation’s economic recovery and stabilization.
As for the bank, President Asif Ali Zardari urged “for increased support” in order to fight climate change, highlighting the nation’s critical need for climate finance.
“Highlighted that the severe climate changes and devastating floods of 2022 had a profound impact on the agriculture sector, education system, and road infrastructure of the country,” stated President Zardari.
Three key areas are prioritized in the ADB’s 2021–2025 country partnership strategy for Pakistan: enhancing resilience, fostering competitiveness, and advancing the growth of the private sector.
The bank has pledged 755 public sector loans, grants, and technical assistance to Pakistan totaling $41.4 billion as of December 31, 2023. Currently, Pakistan is home to 55 loans and four grants totaling $10.11 billion from ADB’s sovereign portfolio.
$31.76 billion in loans and grants, both sovereign and nonsovereign, have been given to Pakistan overall.
The Asian Development Fund, additional special funds, and regular and concessional ordinary capital resources were used to finance these loans.
