From Survival to Resilience:
Rethinking How Pakistan Finances Disasters
By Bilal Anwar | CEO, National Disaster Risk Management Fund
The National Disaster Risk Management Fund is fast evolving to play a catalytic role for piloting new financing instruments and fostering partnerships with insurers, development banks, and civil society.
Just five years short of the finishing line in 2030, the global pursuit of the SDGs remains a story of uneven progress. Originally envisioned as a transformative framework for a better world, the SDGs were meant to stimulate coordinated action against poverty, inequality, social protection, and climate change, among other development goals. Yet the record so far has been patchy, particularly across the Global South, where structural constraints, limited fiscal space, and repeated climate crises have tapered progress.
Pakistan’s trajectory exemplifies this shared struggle with the Global South. Ranked 137 out of 167 countries, its SDG performance has been mixed at best, falling behind many of its regional peers. However, beyond the numbers, the human costs of this underachievement are sobering: 40 percent of Pakistan’s population, nearly 97 million people, remain trapped in poverty; 26 million children are out-of-school; almost half of the female population cannot read or write; and 40 percent of children under five suffer from stunted growth. Women, as is often the case, bear a disproportionate share of these deprivations.
This reality exposes a persistent paradox. While Pakistan has recorded macroeconomic improvements in recent years, these achievements have translated into better living conditions for ordinary people in a limited way. The stabilization witnessed in 2024, with historically low inflation levels, was heralded as a sign of recovery. Yet it did not significantly dent poverty or lift vulnerable households out of impoverishment. Similarly, while progress has been recorded on climate action under SDG 13, it has been overshadowed by devastating floods, heatwaves, and other shocks that undo the very gains being reported.
In truth, Pakistan’s development trajectory remains intensely fragile, easily unsettled by crises beyond its immediate control.
Few reminders of this fragility are as stark as the climate-induced disasters of the past two decades. The 2005 earthquake, the super floods of 2010, and the unprecedented flooding of 2022 collectively affected tens of millions of people and caused tens of billions of dollars in damage. The 2022 floods alone impacted over 33 million Pakistanis and left damages and losses exceeding US$30 billion. These figures dwarf the country’s annual development spending. These events have not only inflicted widespread human suffering but have also systematically derailed Pakistan’s economic and social progress. Each time, resources that could have been invested in schools, health systems, or renewable energy are redirected towards relief and reconstruction. Each time, the most vulnerable communities are pushed further into poverty. And each time, the cycle of development is broken and reset, leaving long term transformation further out of reach.
The costs of disasters in Pakistan thus extend well beyond the immediate humanitarian response. They disrupt fiscal planning, divert scarce resources from innovation and growth, and deepen structural inequities. For a country already grappling with limited fiscal space and competing development priorities, the recurrence of such shocks amounts to structural constraints on sustainable development.
Unless resilience is systematically embedded into national planning and financing, the SDGs will remain elusive targets rather than achievable commitments.
585 feet Flood protection Gabion Wall, constructed in UC Rait Mohala at AJK, Neelum funded by NDRMF.
This is where disaster risk financing assumes strategic importance. Unlike the traditional reliance on ad-hoc relief, disaster risk financing is built on pre-arranged financial mechanisms that deliver quick, predictable, and targeted resources when disasters strike. Instruments such as contingency funds, insurance schemes, catastrophe bonds, and regional risk-pooling arrangements can provide liquidity at critical moments, sparing governments from destabilizing budget reallocations. More importantly, disaster risk financing incentivizes investments in risk reduction and resilience, ensuring that infrastructure, agriculture, and social protection systems are designed to withstand future shocks.
In practical terms, disaster risk financing can mean that farmers receive compensation shortly after floods destroy their crops, schools and hospitals are rehabilitated without lengthy delays, and vulnerable households are cushioned from sliding deeper into poverty. It transforms disaster response from reactive charity into proactive resilience.
The National Disaster Risk Management Fund (NDRMF), supported by the government and development partners, has evolved to become the country’s primary institutional mechanism for steering the agenda for financing resilience. Its previous portfolio includes building flood-resilient housing, strengthening embankments, installing early warning systems, and designing nature-based solutions that restore ecosystems while reducing disaster risks. The Fund is fast evolving to play a catalytic role for piloting new financing instruments and fostering partnerships with insurers, development banks, and civil society.
Yet Pakistan’s challenge is not just to maintain such efforts but to scale them significantly. The frequency and intensity of climate-induced disasters are only expected to rise, and so will the costs. Meeting this challenge requires embedding disaster risk financing across all levels of governance and development planning, linking it with social protection systems, public investment programs, and fiscal frameworks. It also requires building a broader culture of risk awareness, where resilience is not treated as an afterthought but as a prerequisite for sustainable development.
Through smart scaling and implementation of Disaster Risk Funds, Pakistan can break the costly cycle of disaster and recovery. This would allow development gains to be preserved, investments to compound, and communities to thrive rather than merely survive. NDRMF is leading these efforts in collaboration with development partners, government support, and most importantly, in close liaison with communities on the ground.