IMF, ADB Push Pakistan to Expand Disaster Insurance
Pakistan continues to suffer heavy economic losses every year from floods, earthquakes, and other natural disasters, with damages running into billions of rupees. Despite this recurring threat, most public development projects in the country remain without insurance coverage.
International financial institutions, including the International Monetary Fund (IMF) and the Asian Development Bank (ADB), have advised the government to improve its insurance policies to reduce future economic shocks.
Officials say Pakistan’s vulnerability is among the highest globally, ranking within the five most disaster-prone nations. Frequent climate-related incidents not only strain the economy but also leave many communities exposed and reverse years of progress.
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Sources in the Finance Ministry revealed that the IMF has emphasized the urgent need to insure all new development projects, citing massive losses when disasters strike. The ADB has also urged wider access to insurance and is reportedly preparing a detailed plan to strengthen the sector.
Although Pakistan’s banking industry is well-established, its insurance market remains underdeveloped compared to international benchmarks. The Securities and Exchange Commission of Pakistan (SECP), the body responsible for insurance regulation, is facing capacity challenges due to a lack of technical experts, slowing progress on reforms.
