ISLAMABAD: Pakistan faces billions of rupees in damages every year due to floods and other natural disasters, yet most development projects remain uninsured.
Global lenders, including the International Monetary Fund (IMF) and Asian Development Bank (ADB), have now urged the government to strengthen its insurance framework to reduce economic losses.
Pakistan is ranked among the five most disaster-prone nations worldwide. Floods, earthquakes, and climate-related crises continue to strain the economy, leaving communities vulnerable and development gains at risk.
Despite a robust banking sector, the country’s insurance industry lags behind international standards, limiting its ability to cushion disaster impacts.
According to Finance Ministry sources, the IMF has stressed the need to provide insurance cover for all new development projects. Without this safeguard, billions are lost annually to natural calamities.
The ADB has also called for expanding insurance access and is reportedly working on a comprehensive plan to develop the sector further.
The Securities and Exchange Commission of Pakistan (SECP) oversees insurance regulation but faces capacity constraints. Its insurance division is short on technical experts, slowing reform efforts.
