Pakistan, ADB agree on $304.5 million climate resilience projects in Sindh, Punjab

Pakistan and the Asian Development Bank have agreed on two major climate resilience initiatives totaling more than $300 million, aimed at strengthening coastal protection in Sindh and promoting climate-resilient, low-carbon agriculture in Punjab, officials said.

The projects include the Sindh Coastal Resilience Sector Project, valued at $180.5 million, and the Punjab Climate Resilient and Low Carbon Agriculture Mechanization Project, amounting to $124 million.

Muhammad Humair Karim, secretary of the Ministry of Economic Affairs, thanked the ADB for its role as a development partner and for continued support to Pakistan in advancing climate resilience, sustainable agriculture and inclusive growth.

He said the Sindh Coastal Resilience Sector Project will promote integrated water resources and flood risk management, restore nature-based coastal defenses, and strengthen institutional and community capacity for strategic action planning. The project will be financed through $140.5 million from the ADB, including a $140 million 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 Government of Sindh.

According to the ministry, the Sindh project will directly benefit more than 3.8 million people in the districts of Thatta, Sujawal and Badin.

Karim said the Punjab Climate Resilient and Low Carbon Agriculture Mechanization Project will enhance agricultural productivity and climate resilience across 30 districts of Punjab. The project, with a total cost of $129 million, will be financed through a $120 million ADB loan, a $4 million ADB grant and $5 million in counterpart funding from the Government of Punjab.

The Punjab initiative will improve access for small farmers to climate-smart machinery, introduce circular agriculture practices to reduce crop residue burning, establish testing and training facilities, and empower 15,000 women through skills development and livelihood diversification, the secretary said.

Karim described both initiatives as transformative, saying the Sindh Coastal Resilience Sector Project would help safeguard livelihoods, food security and biodiversity along Sindh’s vulnerable coastal belt, while the Punjab project would support sustainable, low-carbon agricultural growth and inclusive development.

Emma Fan, ADB country director for Pakistan, welcomed the government’s commitment to the initiatives. She highlighted the importance of the Sindh project in addressing climate-induced risks and protecting coastal communities, and described the Punjab mechanization project as a key step toward modernizing agriculture and reducing emissions.

Both sides said they are committed to ensuring effective use of the financing and to completing the projects successfully and on schedule.