Strengthening ‘Disaster Risk Financing’ key amid climate, fiscal risks: Ahsan

ISLAMABAD, Aug 7 (APP): Minister for Planning, Development and Special Initiatives, Professor Ahsan Iqbal on Thursday stressed the urgent need for Pakistan to strengthen its Disaster Risk Financing (DRF), which he described as a “national insurance policy” rather than merely a source of funding for future natural catastrophes.
He made these remarks while addressing a seminar titled “Disaster Risk Financing to Strengthen Pakistan’s Financial Resilience,” organized by the National Disaster Risk Management Fund (NDRMF) under the umbrella of the Ministry of Planning, Development and Special Initiatives; and the Ministry of Finance.
He said that in an era of escalating climate uncertainty and financial vulnerability, it was imperative to make Pakistan strong, sustainable and future-ready to face climate change risks.
The minister highlighted URAAN-Pakistan, the national transformation vision for a stronger, smarter, and more self-reliant country, which is anchored in five strategic pillars: exports, e-Pakistan, environment and climate change, energy and infrastructure, and equity and empowerment.
“Disaster Risk Financing, by design and by necessity, cuts across all five pillars of URAAN-Pakistan,” he added.
Ahsan Iqbal stressed that without resilience, there could be no sustainable growth, and without financial preparedness, there could be no secure future.
“Climate change is no longer a distant threat. It is here, and we are experiencing it. It is now — and Pakistan, tragically, is on the front line,” he said, adding that Pakistan has been ranked the most climate-vulnerable country in the world this year.
Drawing the attention of the international community, he said Pakistan had endured a relentless series of disasters over the past two decades, including the 2005 earthquake and floods in 2010, 2011, 2014, 2020 and 2022 each inflicting billions of dollars in losses and displacing millions.
“Even now, as we face erratic monsoon patterns and rising glacial lake outburst floods, the threat remains very real,” he warned.
This year, the minister noted, the United Nations has declared the International Year of Glacial Preservation, a timely reminder that Pakistan’s northern glaciers — which supply 75% of its river water — were rapidly retreating.
He said Pakistan has historically relied on the public exchequer and international donor support to manage climate shocks.
While calling these “critical lifelines,” he noted they were neither sustainable nor timely. Delayed recovery, compounded damages, and disproportionate suffering among the poor underscore the need for change.
“This reactive approach is not fit for the future. We must shift from reaction to readiness, and from fragility to resilience. That is where disaster risk financing becomes a game-changer,” he said.
Ahsan Iqbal said a strengthened DRF would ensure immediate availability of resources, not weeks or months later, enabling efficient and targeted relief and reconstruction efforts.
He acknowledged the leadership of the NDRMF in advancing this agenda through initiatives such as national catastrophe modeling, integration of risk into public investment frameworks, and the exploration of insurance, contingent credit, and risk-layering instruments. “We are making meaningful progress,” he said.
The minister assured full implementation of the seminar’s recommendations, adding that it was time for Pakistan to take a decisive step toward transforming into a $1 trillion economy by 2035.