ISLAMABAD – Pakistan and Asian Development Bank reaffirmed determination to ensure effective utilization of funds and the timely completion of two projects, positioning agreement as decisive move in strengthening Islamabad’s climate resilience and sustainable development agenda.
The country of around 240 million clinched landmark climate financing agreement worth more than $300 million with Asian Development Bank (ADB), marking major boost to country’s fight against climate change through coastal protection and low-carbon agriculture.
The deal covers two flagship initiatives including $180.5 million Sindh Coastal Resilience Sector Project and Punjab Climate Resilient and Low Carbon Agriculture Mechanisation Project, valued at around $124 million. The agreements were signed at a ceremony in Islamabad.
Secretary Ministry of Economic Affairs Muhammad Humair Karim praised ADB as a trusted development ally, saying the partnership shows Pakistan’s determination to build climate resilience, strengthen food security, and promote inclusive economic growth.
Sindh Coastal Resilience Sector Project is set to deliver a comprehensive response to climate threats along the province’s vulnerable coastline. The initiative will focus on integrated water resource management, flood risk reduction, and the restoration of natural, nature-based coastal defenses, while also enhancing the capacity of institutions and local communities for long-term planning and disaster preparedness.
The project carries total cost of $180.5 million, financed through $140.5 million from Asian Development Bank, including $140 million loan and $0.5 million technical assistance grant, along with $40 million from Green Climate Fund and $20 million in counterpart funding from the Sindh government.
More than 3.8 million people in the districts of Thatta, Sujawal, and Badin are expected to benefit directly.
At same time, Punjab Climate Resilient and Low Carbon Agriculture Mechanisation Project aims to reshape farming practices across 30 districts of Punjab, boosting productivity while reducing environmental damage. With total outlay of $129 million, the project will be funded through a $120 million ADB loan, a $4 million ADB grant, and $5 million contributed by the Punjab government.
Small farmers will get access to climate-smart agricultural machinery, circular farming practices will be introduced to curb crop residue burning, and testing and training facilities will be established to modernize agricultural operations. A major focus of the project is women’s empowerment, with 15,000 women set to receive skills training and support for livelihood diversification.
Terming initiatives as transformative, Karim said Sindh project would help safeguard coastal livelihoods, food security, and biodiversity, while Punjab project would drive sustainable, low-carbon agricultural growth and promote inclusive development across the province.
ADB Country Director Emma Fan welcomed Pakistan’s strong commitment, stressing urgency of addressing climate-driven risks in coastal regions and calling the Punjab mechanisation project a crucial step toward modernizing agriculture and cutting emissions.
