Pak Invests US$ 1.8 Bln In Disaster Management Endeavours: Lt Gen (R) Nadeem Ahmed

Chief Executive Officer (CEO) National Disaster Risk Management (NDRMF) Lt Gen (R) Nadeem Ahmed Tuesday said Pakistan is spending around US$ 1.5 to 1.8 billion every year in disaster management endeavours in the consequence of various disasters occurring frequently in the country.

ISLAMABAD, (UrduPoint / Pakistan Point News - 11th Dec, 2018 ) :Chief Executive Officer (CEO) National Disaster Risk Management (NDRMF) Lt Gen (R) Nadeem Ahmed Tuesday said Pakistan is spending around US$ 1.5 to 1.8 billion every year in disaster management endeavours in the consequence of various disasters occurring frequently in the country.

Talking to APP, NDRMF Chief Lt Gen (R) Nadeem Ahmed said the country with regards to her terrain is a disaster prone country where the finances put into efforts responding disasters worth 0.5-0.8 percent of GDP and 4-5 percent of the current expenditure which could be saved by investing in disaster risk reduction projects.

"This amount could bring huge social sector development which depends on the conduct of the stakeholders the way the handle the saved amount of the funds," he added.

"The annual Pre-Monsoon Conference prior to 2010 floods proposed the then Prime Minister to provide US$400 million for disaster risk reduction projects in the provinces to avoid the damages of lurking floods.

He refused to provide any assistance and claimed that after 18th it has become provincial subject to deal with disasters. The super floods caused US$ 10.5 billion worth loss to the national economy which underscores the significance of investment in disaster risk reduction," he maintained.

NDRMF, he said has been established for the first time in this region in the background of massive loss and damages bore by the country due to disasters and calamities. The Fund has received initial financial assistance of US$ 100 billion from Asian Development Bank, US$ 25 billion from the government, US$ 3.5 million, US$ 1.5 million by Swiss government, he added.

"The proactive, well knitted and long term approach of the Fund has attracted other international donors who state that as its approach covers all aspects from environment, gender disparity; social safeguards to procurement matters and other disaster management matters are addressed. The donors wanted to contribute into disaster risk reduction projects through NDRMF instead of giving direct finances to the project implementing organizations," he informed.

He said it's the first time that a government fund (NDRMF) would provide finances to the United Nations agencies, government departments, non-governmental organizations (NGOs) and international non-government organizations (INGOs) to implement disaster risk reduction projects.

"The Fund could not make things happen overnight so it adopted National Disaster Management Plan and National Flood Management Plan as a base document which is providing a lifeline for 10 years. Hence, the Fund has taken long term policy and structured approach," Lt Gen (R) Nadeem Ahmed said.

The Fund is not only dealing with disaster risk reduction rather disaster risk transfer as the risk which cannot be mitigated should be transferred through various mechanisms and techniques.

NDRMF is fully functional and operational with sufficient amount of finances available whereas it is an independent entity with its own board of directors comprising representatives from all quarters concerned, adding the board has passed 29 policies so far, he said.

There are certain public institutions that go redundant as the government had no funds available and in order to cope with that situation an endowment fund of US$ 123 million at an interest rate of 9.8 percent has been set up by the Fund, the CEO NDRMF informed. After 3 years, he said the 9 percent amount of worth nearly Rs 13 billion would be available whereas Asian Development Bank has managed to bear the cost of NDRMF's three years expenses, he added.

He said the Fund since its inception in April 2018 has faced major issues including institutional management amid transition of three governments from the outgoing, interim to the new government in power, corporate compliance whereas the fund has maximum to potential to incorporate climate change plan if formulated as at present there is only climate change policy.