Pakistan on Tuesday signed two major climate-focused financing agreements worth a combined $304.5 million with the Asian Development Bank (ADB), marking a significant step toward strengthening climate resilience and promoting sustainable development across vulnerable regions of the country.
According to officials familiar with the development, the agreements cover the Sindh Coastal Resilience Sector Project (SCRP) and the Punjab Climate Resilient and Low Carbon Agriculture Mechanization Project. Together, the initiatives aim to address climate-induced risks such as flooding, sea intrusion, and agricultural emissions while improving livelihoods and long-term economic stability.
The Sindh Coastal Resilience Sector Project carries a total cost of $180.5 million. Financing for the project includes $140.5 million from ADB, comprising a $140 million loan and a $0.5 million technical assistance grant, along with $40 million from the Green Climate Fund. An additional $20 million will be provided as counterpart funding by the Government of Sindh. The project is designed to improve integrated water resource management, reduce flood risks, and restore nature-based coastal protection systems, while also strengthening institutional capacity and community-level planning.
The SCRP will be implemented in the coastal districts of Thatta, Sujawal, and Badin, areas that are among the most exposed to climate-related flooding, sea-level rise, and saline intrusion. Officials said the initiative is expected to directly benefit more than 3.8 million people by protecting livelihoods, improving food security, and safeguarding fragile coastal ecosystems that are critical to local economies.
The second agreement focuses on transforming agriculture in Punjab through the Climate Resilient and Low Carbon Agriculture Mechanization Project, valued at $124 million. The project will be financed through a $120 million loan from ADB, a $4 million ADB grant, and $5 million in counterpart funding from the Government of Punjab. Implementation will span 30 districts across the province.
Under the Punjab programme, small farmers will gain improved access to climate-smart agricultural machinery aimed at enhancing productivity while reducing environmental impact. The project will also promote circular agriculture practices to curb crop residue burning, a major contributor to air pollution and carbon emissions. In addition, testing and training facilities will be established to support modern mechanization and sustainable farming techniques.
A key social component of the Punjab project includes skills development and livelihood diversification initiatives targeting around 15,000 women, helping strengthen rural inclusion and economic participation.
ADB representatives noted that the Sindh project is focused on long-term protection of coastal livelihoods, ecosystems, and food security, while the Punjab initiative seeks to modernize agriculture, boost resilience to climate shocks, and reduce emissions from farming practices. Together, the two projects reflect Pakistan’s broader push to align economic development with climate adaptation and mitigation goals.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.