IMF suggests disaster insurance in Pakistan, highlighting the urgent need to shield the country from massive financial setbacks caused by recurring natural calamities , ARY News reported. According to finance ministry sources, the global lender has urged the government to expand insurance coverage and make it a mandatory safeguard for future projects.
Pakistan is no stranger to devastating floods, earthquakes, and storms. Each year, these disasters wipe out billions of rupees, leaving infrastructure and communities in ruins. Yet, despite having a strong banking system, the insurance industry continues to lag behind international standards, limiting its ability to cover such overwhelming losses.
Officials revealed that IMF suggests disaster insurance in Pakistan not only for businesses and individuals but also for government-funded development projects, many of which currently remain uninsured. This gap leaves valuable resources vulnerable and drains the economy after every catastrophe.
Adding to the concern, the Securities and Exchange Commission of Pakistan (SECP), which regulates the insurance sector, struggles with limited capacity. Its insurance division, sources noted, urgently requires technical experts to strengthen oversight and meet the rising demand for disaster coverage.
Interestingly, the call for reform is not coming from the IMF alone. The Asian Development Bank (ADB) has also pushed Islamabad to roll out a comprehensive plan that expands insurance protection against natural calamities.
With the frequency of climate-related disasters increasing, the urgency could not be clearer. IMF suggests disaster insurance in Pakistan as a tool to not only secure financial stability but also safeguard future development. Without it, the country risks losing billions more in resources, infrastructure, and human potential.
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