Pakistan and ADB have signed over $300 million in financing for coastal protection in Sindh and climate-smart, low-carbon agriculture in Punjab.
Pakistan, ADB sign new climate resilience package
Pakistan and the Asian Development Bank (ADB) have signed two major climate resilience initiatives worth more than $300 million, aimed at strengthening coastal protection and promoting low-carbon, climate-smart agriculture.
The agreements, signed in Islamabad, cover the $180.5 million Sindh Coastal Resilience Sector Project (SCRP) and the Punjab Climate Resilient and Low Carbon Agriculture Mechanisation Project, valued at $124 million. Together, they are designed to protect vulnerable communities, enhance food security and support more inclusive economic growth.
Speaking at the signing ceremony, Secretary Economic Affairs Division Muhammad Humair Karim described ADB as a trusted development partner in Pakistan’s efforts to build climate resilience and modernise agriculture. He said both projects reflect the government’s focus on long-term, sustainable development rather than short-term fixes.
Sindh Coastal Resilience Project to protect vulnerable shores
The Sindh Coastal Resilience Sector Project is aimed at strengthening climate resilience along one of Pakistan’s most vulnerable coastal belts. The initiative focuses on integrated water resources and flood risk management, restoration of nature-based coastal defences, and building institutional and community capacity for climate planning.
According to the Ministry of Finance and Revenue, the $180.5 million project will be financed through a $140 million ADB loan and a $0.5 million technical assistance grant, along with $40 million from the Green Climate Fund and $20 million in counterpart funding from the Sindh government.
The project is expected to directly benefit more than 3.8 million people across Thatta, Sujawal and Badin districts. By restoring coastal ecosystems such as mangroves, improving drainage and strengthening embankments, the initiative aims to reduce flood risks, protect livelihoods and safeguard biodiversity along the Arabian Sea coastline.
Karim said the Sindh project would play a critical role in protecting food security and rural incomes in low-lying areas that are increasingly exposed to sea intrusion, storm surges and climate-induced disasters.
Punjab project to drive climate-smart, low-carbon agriculture
The Punjab Climate Resilient and Low Carbon Agriculture Mechanisation Project is aimed at making farming more productive, climate-resilient and environmentally friendly across 30 districts of the province.
With a total outlay of $129 million, the project will be financed through a $120 million ADB loan, a $4 million ADB grant and $5 million in counterpart funding from the Punjab government. The focus is on improving access to climate-smart machinery for small farmers, promoting circular agriculture practices and cutting emissions from agriculture.
One of the key goals is to reduce crop residue burning by promoting alternative uses for straw and other farm waste. This is expected to help improve air quality, especially in urban centres affected by smog, while also recycling nutrients back into the soil.
The project will also establish testing and training facilities to familiarise farmers with modern equipment and climate-smart techniques. Around 15,000 women are expected to benefit through skills development and livelihood diversification, making the project an important driver of inclusive rural development.
Millions to benefit from resilience, productivity and inclusion
Karim described both initiatives as transformative, noting that the Sindh coastal project will help safeguard livelihoods, food security and biodiversity, while the Punjab programme will push agriculture toward higher productivity and lower emissions.
ADB Country Director Emma Fan welcomed Pakistan’s commitment to climate action, calling the Sindh initiative a vital step in tackling climate-induced risks and protecting coastal communities. She also described the Punjab mechanisation project as an important move toward modernising agriculture, supporting farmers and reducing greenhouse gas emissions.
Millions of people are expected to benefit directly and indirectly from improved protection against floods and sea intrusion, better access to climate-smart tools, and stronger support for women and smallholder farmers. The projects also aim to create demonstration models that can be replicated in other provinces over time.
Both the government and ADB reaffirmed their commitment to ensure effective use of financing and timely completion of the projects. For Pakistan, the two agreements represent another step in shifting development spending toward resilience, sustainability and inclusive growth in the face of climate change.
