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ADB and Pakistan to sign pact for $200m tranche

ISLAMABAD: The Asian Development Bank (ADB) and Pakistan will sign an agreement under the Pakistan National Disaster Management Fund for first tranche of $200 million today (Friday).

According to documents available with Daily Times, the bank will provide $1 billion loan to Pakistan under the multi-tranche financing facility for the Pakistan National Disaster Management Fund (PNDMF). The PNDMF is being established under the government- owned sustainable mechanism to enhance Pakistan’s resilience to climate and other natural hazards and to strength the government ability to quickly response to disaster trigger by natural hazards.

The ADB and Pakistan signed a memorandum of understanding (MoU) for the establishment of the PNDMF in November 2015 and this fund will be used to support disaster risk reduction efforts, enhance fiscal resilience in case of disasters and provide relief, recovery, rehabilitation and reconstruction.

Pakistan is vulnerable to natural hazards, including droughts, earthquakes, floods and cyclones. More than 30 million people were affected by the three major floods in 2010, 2011 and 2014 that resulted in damage and losses amounting to $14.1 billion and in 2005 a major earthquake caused more than 73,000 deaths and $5 billion in losses. The country also experienced a major cyclone in 2007 and drought in 2015 that collectively affected a million people. About two-fifth of the country is classified as semi-arid to arid, with many susceptible parts now frequently experiencing drought conditions.

The fund will allow rapid deployment of assistance on a needs basis to implement the under-resourced National Disaster Management Plan (NDMP) and would present a common window to pool various contributions from a diverse base of contributors, serving as a vehicle for donor alignment and coordination by the government. The window will cater to disaster risk management, disaster risk financing, and sustained relief, recovery, reconstruction and rehabilitation.

It will also ensure good governance and effective fiduciary oversight for disaster financing and management through the trustee, technical advisory committee, a dedicated Secretariat and a fund manager, supervised by a steering committee led by the finance ministry with representatives from NDMA, relevant federal and provincial ministries and departments, and contributors from the international donor community, philanthropists, and the private sector.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2014, ADB assistance totaled $22.9 billion, including co financing of $9.2 billion.

Source: Daily Times

Byline: Shahzad Paracha

December 2, 2016

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