The Asian Development Bank (ADB) has proposed a $250 million policy-based loan to help Pakistan strengthen its resilience against climate change and natural disasters through institutional reforms, climate-resilient investments, and improved disaster risk financing.

The proposed Climate and Disaster Resilience Enhancement Program (Subprogram 2) is currently listed as "Proposed" and will be financed through ADB's ordinary capital resources, including concessional lending. The Ministry of Finance and Revenue will serve as the executing agency for the nationwide programme.

According to the project document, the programme is designed to enhance Pakistan's capacity to manage disasters caused by natural hazards and the increasing impacts of climate change through a three-pronged strategy.

The initiative will focus on strengthening institutional capacity for climate and disaster planning, emergency response, and strategic policymaking; increasing investment in disaster risk reduction and climate resilience; and enhancing disaster risk financing through a risk-layered financing framework.

ADB noted that the programme is aligned with Pakistan's Vision 2025, the Resilient Recovery, Rehabilitation and Reconstruction Framework (4RF), the updated Nationally Determined Contribution (NDC), the National Climate Change Policy, and the National Adaptation Plan.

The proposed programme also supports ADB's Country Partnership Strategy for Pakistan and Strategy 2030, particularly in the areas of poverty reduction, gender equality, climate resilience, food security, and governance reforms.

According to ADB, the programme is expected to strengthen disaster preparedness and response systems, improve disaster risk information, promote climate-resilient investments that protect livelihoods and public assets, and expand disaster risk financing alongside shock-responsive social protection mechanisms to support faster recovery after natural disasters.

The project has been classified under effective gender mainstreaming and is intended for implementation across Pakistan.