ISLAMABAD: The Asian Development Bank (ADB) on Monday approved a $554 million financing package for Pakistan, including new and reallocated funds, to support recovery and reconstruction efforts in the South Asian country following this year’s devastating floods.

After unprecedented heatwaves from April to June 2022, Pakistan suffered a prolonged and intense monsoon that led to the country’s worst flooding in a century with glacial lakes bursting, rivers breaking their banks, flash flooding, and landslides. 

Over 1,700 people were killed as large swathes of land remained underwater for several weeks while critical infrastructure was destroyed as well. A post-disaster needs assessment conducted by the government and development partners, including ADB, estimated total damage and losses at more than $30 billion. 

In a statement, the bank said the financing includes a $475 million loan, a $3 million technical assistance grant from the ADB and a $5 million grant from the Government of Japan. It added that the package will support the restoration of irrigation, drainage, flood risk management, on-farm water management, and transport infrastructure in Balochistan, Khyber Pakhtunkhwa, and Sindh provinces. 

ADB’s Emergency Flood Assistance Project will also incorporate climate and disaster resilience measures into the design of the infrastructure. ADB has repurposed an additional $71 million from existing loans to support the government’s flood-response efforts.

“This year’s floods, which affected 33 million people and brought enormous damage to infrastructure and agriculture, are a devastating reminder of Pakistan’s acute vulnerability to climate change,” ADB Director General for Central and West Asia, Yevgeniy Zhukov, said. 

“This project will help to rebuild critical infrastructure in affected areas and restore rural livelihoods,” he added. 

The loan will reconstruct about 400 kilometers (km) of roads; about 85 km of the N-5, the country’s busiest national highway; and about 30 bridges. It will also help to restore and upgrade irrigation and drainage structures including canals and on-farm water facilities. 

This, the ADB said, would be done to restore livelihoods and strengthen flood risk management structures to mitigate future risks to agricultural land, communities, and assets.

“More people are expected to fall into poverty as a result of the floods and the food-insecure population is likely to double to more than 14 million people in the most affected districts,” ADB Principal Transport Specialist Zheng Wu said. 

“In close coordination with the government and other development partners, this project will provide crucial support to restore agriculture and other priority infrastructure to support socioeconomic recovery from floods.”

The $3 million technical assistance grant will support the implementation of the project and the preparation of an ensuing flood risk management investment.

In October, ADB approved a $1.5 billion loan to support the government’s provision of social protection, food security, and employment to mitigate the adverse impact of cumulative external shocks.