- Program to stimulate inclusive investments in disaster risk mitigation.
- Agreement signed after the nod from Minister of Economic Affairs Ahad Cheema.
- AfDB project to help respond to the country’s exposure to climate impacts.
ISLAMABAD: Pakistan and the Asian Development Bank (ADB) on Tuesday signed a $500 million loan agreement for the Climate and Disaster Resilience Enhancement Program (CDREP) to strengthen the country’s perseverance against disasters triggered by natural hazards and the impacts of environmental crises.
The program aims to strengthen Pakistan’s institutional capacity in planning, preparedness and response. It will help promote inclusive investments in disaster risk reduction and climate resilience, while supporting the scale-up of disaster risk financing through a tiered risk approach.
The agreement was signed after the approval of Federal Minister for Economic Affairs Ahad Cheema, according to a statement issued by the Economic Affairs Division (EAD).
Secretary of the Ministry of Economic Affairs, Dr. Kazim Niaz, and ADB Country Director, Ms. Emma Fan, signed the loan agreement. The ceremony was attended by senior government officials and the multilateral lender.
Cheema, while consenting to the agreement, said the signing of the agreement underlines Pakistan’s commitment to prioritizing climate change initiatives and increasing disaster risk financing using a multi-pronged approach. risk levels.
“This program is designed as a programmatic approach and aims to strengthen Pakistan’s capacity for climate change adaptation and disaster risk management, addressing the country’s vulnerabilities to natural disasters and climate impacts,” they said. the two officials in a joint statement after signing the agreement.
Last week, Pakistan launched its first National Climate Finance Strategy (NCFS) to address the growing challenges of global warming with a strategy to mobilize funds for climate change mitigation and adaptation efforts. The strategy focuses on increasing climate-related investments, attracting international finance and improving national financial systems.
Federal Minister for Finance Muhammad Aurangzeb and Prime Minister’s Climate Change Coordinator Romina Khurshid Alam jointly launched the NCFS at the Pakistan Pavilion in Baku on the sidelines of the two-year World Climate Conference (COP29). weeks led by the UN, on November 15.
“It’s a proud moment for us to be able to roll out Pakistan’s first-ever climate finance strategy, a major milestone in our commitment to a sustainable and climate-resilient future,” said Romina Khurshid Alam, Climate Assistant of the Prime Minister, in his opening speech. during the launch event.
Explaining the strategy, she said the Climate Finance Strategy charts a path to closing the significant climate finance gap Pakistan faces – a gap we estimate to reach $348 billion by 2030 for our development goals climate resilient and low carbon.
Ranked among the 10 most climate-vulnerable countries, Pakistan suffered a loss of $30 billion in the 2022 floods, directly affecting 33 million people.