Daily Times

The Asian Development Bank (ADB) has announced that it will provide $2 billion in annual assistance to Pakistan over the next three years to support infrastructure development and climate-resilient initiatives.

In 2022, massive floods triggered by climate change devastated several parts of Pakistan, killing 1,700 people, washing away swathes of agricultural land, affecting 33 million people, and incurring losses worth $30 billion, according to government estimates.

A report by the Policy and Strategy Committee (PSC) and the Oversight Board on Post-Flood Reconstruction Activities showed last week that the country had only received $10.9bn from international development partners out of the total estimated loss for post-flood reconstruction work, leaving a $19.1bn shortfall that has halted the rehabilitation of flood-affected communities in three provinces. According to a statement from the President’s House, the announcement was made during a meeting between President Asif Ali Zardari and ADB’s head Masatsugu Asakawa in Islamabad on Tuesday. “[The President of the Asian Development Bank] said that the ADB would provide $2 billion in annual assistance to Pakistan over the next three years, and reaffirmed the bank’s commitment to supporting infrastructure development and climate-resilient initiatives,” the statement said.

The official also commended the recent signs of economic recovery and stabilisation in the country, the statement added. Meanwhile, President Asif Ali Zardari underscored the country’s dire climate finance needs and called “for increased support” from the bank to address climate change.

President Zardari “highlighted that the severe climate changes and devastating floods of 2022 had a profound impact on the country’s economy as well as on its agriculture sector, educational and road infrastructure”. ADB’s country partnership strategy, 2021-2025, for Pakistan, focuses on three priorities: improving economic management, building resilience, and boosting competitiveness and private sector development. As of December 31, 2023, the bank has committed 755 public sector loans, grants, and technical assistance totaling $41.4bn to Pakistan. ADB’s current sovereign portfolio in Pakistan includes 55 loans and four grants worth $10.11bn. Cumulative sovereign and nonsovereign loan and grant disbursements to Pakistan amount to $31.76bn.