Pakistan: Fiscal disaster risk assessment options for consideration

The study presents a series of complementary options for development of a national disaster risk financing strategy, based on a preliminary fiscal risk analysis and a preliminary review of the current budget management of natural disasters in Pakistan. The study draws significantly from international experience of the World Bank, which has provided assistance to several countries on the design and implementation of sovereign disaster risk financing strategies and property catastrophe risk insurance programs.

The report provides i) an overview of the budget processes for the financing of natural disaster losses during each of the three post-disaster phases, ii) a preliminary financial disaster risk assessment for Pakistan, focusing particularly on the fiscal impact of natural disasters, iii) an overview of the private catastrophe insurance market, and iv) reviews the options for future financing of natural disaster recovery and reconstruction expenditures.