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Pakistan, ADB sign $304.5m agreements for climate resilience projects

Pakistan

ISLAMABAD: The Government of Pakistan and the Asian Development Bank (ADB) have signed agreements for two projects worth $304.5 million, aimed at strengthening climate resilience and addressing the impacts of climate change.

According to a spokesperson for the Ministry of Economic Affairs, the agreements include the $180.5 million Sindh Coastal Resilience Sector Project and the $124 million Punjab Climate-Resilient Agricultural Mechanization Project.

The agreements were signed by Secretary of Economic Affairs Muhammad Humair Kareem, ADB Country Director Emma Fan, along with representatives of the Sindh and Punjab governments.

Speaking on the occasion, Secretary Muhammad Humair Kareem said that ADB will provide $140 million in loans and $0.5 million in technical grants for the Sindh Coastal Resilience Project.

He added that the project will directly benefit the districts of Thatta, Sujawal, and Badin, helping protect coastal communities from climate-related risks.

He further stated that the Punjab Climate-Resilient Project will enhance agricultural productivity and environmental resilience across 30 districts of Punjab.

For this project, ADB will provide $120 million in loans and $4 million in grants, while the Punjab government will contribute $5 million. The initiative will improve small farmers’ access to climate-smart agricultural machinery.

ADB Country Director Emma Fan said that the Sindh Coastal Resilience Project will play a key role in safeguarding coastal populations from climate change-induced hazards.

She added that the Punjab Agricultural Mechanization Project represents an important step toward modernizing agriculture and reducing emissions.

The signing of these agreements reflects Pakistan’s continued collaboration with ADB to promote sustainable development and climate resilience across the country.

8 in 10 citizens without safe drinking water, says ADB

ADB

ISLAMABAD: The Asian Development Bank (ADB) warns that nearly 80% of Pakistanis lack access to safe drinking water, according to its latest Water Development Outlook report.

The report highlights that Pakistan will need between $3.5 billion and $4.2 billion over the next decade to improve water governance.

 Due to population growth, per capita water availability has decreased by 2,400 cubic meters, dropping from 3,500 cubic meters in 1972 to 1,100 cubic meters per person by 2030. The lack of safe drinking water is contributing to the rapid spread of diseases.

ADB further notes that excessive water use in agriculture is causing depletion and pollution, while challenges in water flow and infrastructure put Pakistan’s river systems at risk.

 Rural water supply remains inefficient, and monitoring mechanisms are weak. Policies for water availability and safe water provision are not aligned with demand, affecting agriculture, industry, and the energy sector.

Urban areas face a nearly 10% annual increase in water demand, compounded by untreated water and urban flooding, threatening public health and essential services.

 The report also points to aging urban water infrastructure, minimal private investment, and environmental risks from population growth and urban sprawl.

While Pakistan has made progress in developing a water governance framework, funding for an improved water system remains insufficient. Urban water losses are high, tariff recovery is low, and billing systems are inadequate.

The ADB emphasizes that large infrastructure projects, institutional partnerships, technical capacity building, and financial planning are crucial to enhancing water security.

According to current exchange rates, Pakistan would need to invest approximately PKR 12 trillion to upgrade its water systems.

Despite these challenges, the report notes improvements in Pakistan’s water security score over the past 13 years, highlighting gradual progress in water infrastructure development.