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Pakistan NDRMF Consultant Disaster Risk Financing

Project completed

While Pakistan faces significant disaster risk and an increasing rate of occurrence of hazardous eventsi there is very limited understanding of instruments for Disaster Risk Financing (DRF), like insurance soveretgn risk transfer and preparedness for budget reallocations The DRF Consultant will assist the National Disaster Risk Management Fund (NDRMF) in disaster risk modelltng work including the formulation of a national DRF strategy for Pakistan and DRF instruments which can support Government's efforts to better manage the risks and their significant financial implications.

Country/region Topic Period Budget
Pakistan
Climate change and environment
nothemedefined
Disaster risk reduction DRR
01.09.2018 - 31.12.2019
 CHF  150’000
The project in brief
Background Pakistan is one of the most vulnerable countries worldwide to natural hazards and has faced major disasters in the recent past including earthquakes floods, droughts and glacial lake outburst floods These disasters incur a high cost of recovery rehabilitation and reconstruction and have significant financial implica-tions for the country and highlight the country's inadequate financing and risk management capacity including financing mechanisms and risk transfer solutions such as insurance. Due to the lack of an insurance culture and market, the overall insurance penetration has remained less than 1% over the last few years which is one of the lowest levels of penetration in the region. SDC's Disaster Risk Financing Expert will support the DRF activities of the National Disaster Risk Management Fund, to which SDC is also financially contributing with 1.5 Mio CHF through the Asian Development Bank ADB.
Objectives To enhance Pakistan's resilience to extreme weather events and other natural hazards.
Target groups

Direct: governmental stakeholders involved in DRF private insurance companies and potential private sector users

Indirect: disaster affected vulnerable population of Pakistan
Medium-term outcomes Enhanced DRF capacity of the NRDMF to design and implement a national DRF strategy and DRF instruments.
Results

Expected results:  

  1. Assist the NDRMF in the development of a DRF Strategy by drafting a Road map, reviewing existing DRF activities/instruments, preparing the recruitment of DRF consultants / firms and guiding I coordinating their work;
  2. Assist the NDRMF in initiating the DRF Strategy implementation through pilots;
  3. Assist the NDRMF in assessment and improvement of DRF legal framework and guidelines on post-disaster budget-execution,
  4. Support the NDRMF in planning and execution of knowledge events and actions to support the establishment of an insurance culture in the country.
Directorate/federal office responsible SDC
Credit area Humanitarian aid
Project partners Contract partner
Private sector
  • Swiss Private Sector


Coordination with other projects and actors

National Disaster Risk Management Fund, with particular focus on the DRF team;

Government of Pakistans with focus on relevant Ministries (Ministry of Finance, Securities and Exchange Commission Pakistan, NDMA among others)

ADB Pakistan
Budget Current phase Swiss budget CHF    150’000 Swiss disbursement to date CHF    148’454 Total project since first phase Budget inclusive project partner CHF   150’000
Project phases

Phase 1 01.09.2018 - 31.12.2019   (Completed)

  • Sector according to the OECD Developement Assistance Commitiee categorisation DISASTER PREVENTION AND PREPAREDNESS
    Sub-Sector according to the OECD Developement Assistance Commitiee categorisation
    Disaster prevention and preparedness
    Cross-cutting topics Crisis prevention
    The project also supports partner organisation improvements
    Aid Type Project and programme contribution
    Project number

    7F09837

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Last update 16.08.2021