The Asian Development Bank (ADB) has approved $500 million in disaster financing for Pakistan to help the country respond to floods, earthquakes, and other natural disasters.

According to a statement issued by the bank on Wednesday, the funding will provide quick budget support after eligible disasters, helping the government manage emergency spending and reduce the financial impact of such events.

The financing has been approved under ADB’s policy-based lending framework as part of the second subprogram of its Climate and Disaster Resilience Enhancement Program.

Pakistan suffers average annual economic losses of around $2 billion due to floods, earthquakes, and other natural disasters, according to the ADB.

The 2022 floods alone caused $14.9 billion in direct damage and another $15.2 billion in economic losses. The disaster also pushed an estimated 9.1 million people into poverty.

The bank said poorer and rural communities have fewer resources to recover from disasters, while women and girls often face greater hardships.

The ADB-backed program aims to improve Pakistan’s disaster preparedness, strengthen risk management, and incorporate climate resilience into development projects. It will also support reforms to help the government arrange financing quickly when natural disasters occur.

ADB Country Director for Pakistan Emma Fan said vulnerable communities often suffer the most when disasters strike. She said better preparation and investment in resilience could protect lives, livelihoods, and economic development.

Pakistan also faces growing risks from climate change and rising sea levels. An ADB report released last month warned that around 1.48 million people in the country could be exposed to annual coastal flooding by 2100.

The report highlighted rising sea levels, coastal erosion, and saltwater intrusion as major threats to communities, infrastructure, and livelihoods.