Pakistan Loses Billions to Disasters
Pakistan Struggles with Natural Disasters Amid Weak Insurance Coverage
Islamabad – Pakistan remains highly vulnerable to natural disasters, facing billions of rupees in losses each year from floods, earthquakes, and other calamities.
Despite a strong banking sector, the country’s insurance industry lags far behind international standards, limiting its ability to cover disaster-related damages, sources said. “Even government development projects remain uninsured against losses caused by natural disasters,” they added.
The International Monetary Fund (IMF) has reportedly called for mandatory insurance coverage for all new development projects to help mitigate these losses.
Currently, billions of rupees are lost annually to natural calamities without any insurance protection.
Sources further revealed that the Securities and Exchange Commission of Pakistan (SECP), which regulates the insurance sector, is grappling with capacity issues. Its insurance division urgently requires technical experts to strengthen oversight and implementation.
Officials from the finance ministry also noted that the Asian Development Bank (ADB) has urged Pakistan to expand insurance coverage for natural disasters and develop a comprehensive risk management plan.
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