Islamabad 24 June 2019
Islamabad 24 June 2019 – National Disaster Risk Management Fund organizes an opening dialogue on Disaster Risk Financing
National Disaster Risk Management Fund (NDRMF) organized an opening dialogue on Disaster Risk Financing (DRF) held on June 24, 2019, at Marriott Hotel, Islamabad. The dialogue was a joint collaboration between the Swiss Agency for Development and Cooperation (SDC) and the National Disaster Risk Management Fund (NDRMF).
The dialogue featured a discussion on Pakistan’s need for Disaster Risk Financing (DRF) and ways in which the approach to DRF could be shaped in the country. It also featured presentations on the DRF approach adopted by NDRMF, expected outcomes of the strategy and the potential role of the key stakeholders in the process.
Ambassador of Switzerland to Pakistan, His Excellency Thomas Kolly, delivered a welcome speech followed by a Key Note from the Chief of Staff NDRMF, Mohyuddin Ahmad Wani. The Key Note address included the considerable progress made by NDRMF since its inception, to mitigate disaster risks across the country. He also outlined that the magnitude of the Fund focus is on its DRF component and apprised the audience of DRF’s importance for Pakistan.
Additional Secretary Economic Affairs Division Government of Pakistan, Ahmed Hanif Orakzai was the Chief Guest at the event and he spoke to the participants about the importance of DRF in Pakistan’s climatic change and vulnerability to natural disasters.
Deputy Manager DRF at NDRMF Dr.Kamal Ahmed delivered a presentation on the DRF approach adopted by NDRMF. He also highlighted the possible roles of the key stakeholders, e.g. Ministry of Finance, Ministry of Commerce, Security and Exchange Commission in Pakistan (SECP), Benazir Income Support Program (BISP), State Bank of Pakistan (SBP), the Insurance industry, etc.
Director Public Sector Solutions Swiss Re, representing Insurance Development Forum (IDF), Mr. Andreas Prystav’s gave a detailed presentation on the parametric solutions that are getting more attention amongst the policymakers and beat practices of such solutions across the world already deployed. He also suggested similar solutions for Pakistan.
The event mainly focused on highlighting the importance of DRF being relevant to deal with liquidity issues in disaster periods using unique models, similar to those adopted all over the world. Pakistan’s experience with natural disasters in 2005 and the subsequent floods exposed a fiscal vulnerability in dealing with disasters. Keeping this in view, DRF may promote fiscal resilience and financial protection tools which may be used like raising of debt, issuance of bonds and reinsurance. This will amplify the role of capital markets and financial institutions in transferring disaster risks. In its current fiscal position, Pakistan cannot afford to absorb the shock of a large natural disaster and these instruments may be helpful in dealing with such a possibility.
The dialogue provided a platform to all relevant stakeholders and experts from the federal and provincial governments, the insurance industry, regulatory bodies, development banks, and leading think tanks from across the country and engaged them in discussions on the viability and practicality of possible solutions for the implementation of such models for Pakistan.
