The Asian Development Bank (ADB) on Wednesday approved $500 million in contingent disaster financing facilities for Pakistan to help the country withstand and respond to natural disasters, providing prompt budget support following eligible disaster events. According to a statement issued by the ADB, the financing was approved under the bank’s policy-based lending and was aimed at reducing the economic and fiscal impact of disasters, including floods and earthquakes. “Floods, earthquakes, and other disasters cause Pakistan an estimated $2 billion in annual average losses,” the statement read. It added that the 2022 floods alone had caused $14.9 billion in direct damage and $15.2 billion in economic losses, pushing as many as 9.1 million people into poverty. “Poor and rural communities have less capacity to recover, while women and girls are disproportionately affected,” the bank said. The financing formed part of the second subprogramme of the Climate and Disaster Resilience Enhancement Programme, which supported reforms to strengthen disaster preparedness and risk management and integrate resilience measures into Pakistan’s development planning and investment. Read: ADB projects Pakistan's FY2027 growth at 3.7%, inflation at 8.3% The programme also aimed to strengthen the country’s disaster risk financing framework and improve the availability of funds following disaster events. “When disaster strikes, it is often the most vulnerable communities that are hit hardest,” ADB Country Director for Pakistan Emma Fan was quoted in the statement as saying. “Investing in preparedness can help protect lives and livelihoods, reduce economic losses, and safeguard the development gains Pakistan has worked hard to achieve,” she added. Fan said the programme would support Pakistan in implementing “critical reforms to ensure a more resilient future”. The ADB said the programme was aligned with Pakistan’s priorities for managing disaster risks and with the bank’s commitment to supporting resilience initiatives across Asia and the Pacific. Read more: Coastal flood damages in Asia-Pacific could reach $199b annually by 2050: ADB Pakistan's disaster preparedness efforts have faced challenges, including delays in securing funds for long-term flood protection. In August, the Fourth National Flood Protection Plan had been delayed because the government had failed to secure the required funding from domestic and international donors, including the ADB, the World Bank and the Japan International Cooperation Agency. The plan was intended to strengthen protection for agricultural land, homes and infrastructure following the 2022 floods. The ADB has also supported Pakistan's climate and disaster resilience efforts through earlier financing. In October 2024, it approved a $500 million policy-based loan under the Climate and Disaster Resilience Enhancement Programme to strengthen the country's capacity for disaster planning, preparedness and response. In April, the government also sought a further $1 billion in ADB financing under the programme's second tranche, with the proposed support covering disaster risk management, flood management and climate-resilient investment.