Pakistan Faces Average Cost Of Rs136bln Per Annum Due To Natural Disasters: Speakers

The Speakers at a validation session on financial flow and gap analysis of public finance for disaster preparedness and response said Pakistan faced an annual average cost of Rs136 billion due to natural disasters, necessitating a strategic shift towards anticipating their impacts rather than merely responding

ISLAMABAD, (UrduPoint / Pakistan Point News - 8th Apr, 2024) The Speakers at a validation session on financial flow and gap analysis of public finance for disaster preparedness and response said Pakistan faced an annual average cost of Rs136 billion due to natural disasters, necessitating a strategic shift towards anticipating their impacts rather than merely responding.

This imperative emerged from a participatory workshop organized by the Food and Agriculture Organization (FAO) of the United Nations in Islamabad. The workshop aimed to disseminate the Initial Findings of the Financial Flow and Gap Analysis of Public Finance for Disaster Preparedness and Response conducted by FAO Pakistan, a news release said.

The analysis seeks to facilitate specific advocacy and capacity-building steps essential for enabling national, provincial, and district-level systems to finance and support Anticipatory Actions (AA). With a focus on both national and sub-national levels, particularly in Sindh province, the study looked into government climate and disaster risk financing mechanisms, tools, and flows.

Janek Toepper, Climate Change and DRF Specialist, FAORAP, along with Syed Aftab Raza, Public Finance Management Consultant, presented key findings from the research analysis, shedding light on the Disaster Risk Finance for anticipatory action. Following this, Mubushar Hussain, Manager of Disaster Risk Reduction at NDRMF, discussed the Disaster Risk Financing Strategy and NatCat Model.

Emphasizing the necessity for collaborative efforts among public, private, and international stakeholders, speakers highlighted a growing financing gap in global humanitarian assistance, adversely impacting critical services like health, education, and social protection. With only 71% of the required funding received for humanitarian needs during the 2022 floods in Pakistan, they recommended urgent reforms in finance systems to address climate change risks effectively through anticipatory actions.

Experts presented examples from various countries, including Bangladesh, the Philippines, and Mongolia, showcasing how Pakistan can leverage available public funds for anticipatory actions. These funds encompass district contingency funds, provincial disaster management funds, budgetary reallocations, NDMF, Ministry of Finance contingency fund, and contingent credit or risk transfer mechanisms.

Earlier, Florence Rolle, FAO Representative, welcomed participants, highlighting the transformative potential of anticipatory action in humanitarian and development endeavors. Naeem Iqbal, ECHO-PPP Project Coordinator at FAOPK, introduced the ECHO – Pilot Programmatic Partnership project and Anticipatory Action approach, while Ms. Ana Dizon, Early Warning and AA Specialist at FAOPK, moderated the session.

Representatives from several government agencies, international organizations, and relevant stakeholders participated in the workshop including; the National Disaster Management Authority (NDMA), Asian Development Bank (ADB), Economic Affairs Division (EAD), Pakistan Meteorological Department (PMD), Ministry of Planning and Development, National Disaster Response Management Fund (NDRMF), United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA), World Food Program (WFP), United Nations Development Program (UNDP), the German Red Cross, ACTED, UNESCO, Welthungerhilfe (WHH), Secours Islamique France (SIF), Italian Agency for Development Cooperation (AICS), Health and Nutrition Development Society (HANDS), Islamic Relief Pakistan (IRP), and Asian Disaster Preparedness Center (ADPC).