The State Bank of Pakistan (SBP) on Thursday said it had received $500 million from the Asian Development Bank (ADB) as proceeds of a loan for the Climate Change and Disaster Resilience Enhancement Programme (CDREP).

The proceeds would reflect in the SBP’s foreign exchange reserves for the week ending on November 29, 2024 (to be published on December 5, 2024), the central bank said.

The ADB approved this $500-million policy-based loan last month to support climate change and disaster risk reduction and resilience in Pakistan.

“The Climate and Disaster Resilience Enhancement Programme will strengthen Pakistan’s institutional capacity for planning, preparedness, and response; increase inclusive investment in disaster risk reduction and climate resilience; and support the scale-up of disaster risk financing using a risk-layered approach,” the Philippines-based lender said in a statement then.

Apart from funding for the CDREP, the bank also approved a technical assistance grant of $1 million for Pakistan to support implementation of the programme.

According to the ADB, Pakistan is among the most vulnerable countries to climate change and disasters triggered by natural hazards in Asia and the Pacific, with average losses from disaster events exceeding $2 billion per year.

The CDREP supports enhanced capacity for disaster risk mapping and modelling for investment and development decisions. It enhances coordination for disaster monitoring and response.

In a statement earlier this month, the ADB said it had seven projects for Pakistan in 2024, and 16 projects planned for the next year as part of an extensive and meaningful partnership and collaboration with the country.