The State Bank of Pakistan (SBP) announced receiving $500 million from the Asian Development Bank (ADB) under the Climate Change and Disaster Resilience Enhancement Programme (CDREP). This inflow will be included in the SBP’s foreign exchange reserves for the week ending November 29, 2024, boosting the country’s import cover and stabilizing its currency.
As of November 22, Pakistan’s foreign reserves increased by $131 million, bringing SBP’s total reserves to $11.42 billion. The country’s total liquid foreign reserves now stand at $16.08 billion, with $4.66 billion held by commercial banks.
Climate Change and Disaster Risk Reduction
The CDREP aims to:
- Strengthen institutional capacity for climate-related planning, preparedness, and response.
- Promote inclusive investments in disaster risk reduction and climate resilience.
- Enhance disaster risk financing using a risk-layered approach
- Support gender-sensitive and resilient public investments, particularly in flood risk management and nature-based solutions.
Pakistan is among the most climate-vulnerable countries in Asia, with annual disaster-related losses exceeding $2 billion. The ADB has also approved a $1 million technical assistance grant to aid the implementation of CDREP.
Launch of National Climate Finance Strategy
In parallel, Pakistan recently launched its first-ever National Climate Finance Strategy (NCFS) to mobilize funds for climate mitigation and adaptation. Launched at COP29 in Baku by Finance Minister Muhammad Aurangzeb and Prime Minister’s Climate Coordinator Romina Khurshid Alam, the strategy aims to:
- Bridge a $348 billion climate finance gap by 2030.
- Attract international climate financing while improving domestic financial systems.
- Prioritize climate investments focusing on vulnerable groups, including women and children.
At COP29, Pakistan also signed the Declaration on Children, Youth, and Climate Action to integrate child rights into national climate policies, highlighting the government’s commitment to protecting its 112 million youth from climate-related risks.
This inflow and policy initiatives signify a crucial step for Pakistan in tackling climate change challenges and enhancing disaster resilience while fostering economic stability and sustainable development.
