Islamabad/Baku: Romina Khurshid Alam, Coordinator to the Prime Minister on Climate Change, emphasized that the growing negative impacts of climate change, including extreme weather events, rising sea levels, and extended droughts, highlight the urgent necessity for climate-vulnerable developing nations to devise comprehensive strategies to tackle loss and damage in affected communities.
She stressed the importance of incorporating disaster risk financing into broader loss and damage initiatives as a critical step in strengthening resilience, ensuring prompt responses, and supporting long-term recovery. She made these remarks while delivering a keynote address at the prominent event ‘Pakistan and the Global Shield,’ held at the Pakistan Pavilion in Baku on the sidelines of the COP29 global climate summit on Wednesday.Pakistan unveils first climate finance strategy to mobilise funds for national climate action
“Integrating disaster risk financing into efforts to address loss and damage is a proactive strategy for managing the escalating costs of climate change. By combining innovative financial tools with inclusive, data-driven approaches, governments and global partners can reduce climate risks, support recovery, and build resilience,” Romina Khurshid Alam told the audience, which included representatives from various countries, UN agencies, and non-governmental organizations. “Collaborative actions today will safeguard communities and ecosystems, ensuring a more secure and equitable future.”
She further elaborated that today’s discussions with experts in climate and disaster insurance, as well as senior officials from the Ministry of Climate Change and Environmental Coordination, focused on the critical gaps in pre-arranged financial protection, especially in public infrastructure, agricultural livelihoods, and small businesses. They also explored how the Global Shield can add unique value by aligning development efforts, promoting a country-led process, and utilizing pre-arranged financing instruments.
“Let me also highlight an important takeaway from today’s event: Pakistan’s approach serves as a model for integrating disaster risk financing into broader loss and damage strategies. This comprehensive, data-driven, and inclusive process sets an inspiring example for other climate-vulnerable nations,” said Romina Khurshid Alam.
In her welcoming remarks, Aisha Humera Moriani, Secretary of the Ministry of Climate Change and Environmental Coordination, noted that the need for effective financial protection for communities and their livelihoods has gained significant attention due to the increasing recognition of climate change as a critical public policy issue. This recognition has led to the development of more detailed policies and strategies to address its impacts.
She further explained that in Pakistan, the costs of most large-scale natural disasters are borne by the government, with limited disaster risk insurance or non-insurance instruments available. This situation underscores the urgent need to address the significant financing gaps that hinder Pakistan’s ability to respond to such disasters. Unfortunately, the country’s insurance penetration remains limited, accounting for less than 1% of its GDP, which could be pivotal in reducing financial losses, she pointed out.
Highlighting the Ministry of Climate Change and Environmental Coordination’s recent collaborative assessment with the Sustainable Development Policy Institute and the UN Development Programme, the climate change ministry secretary informed the participants that, as a pathfinder country, Pakistan has conducted an extensive in-country process over the past three months to assess climate, disaster risk finance, and insurance initiatives and identify gaps in financial protection.
As a result, the Ministry has received numerous proposals from national and provincial government departments, as well as from the private sector, to close these gaps, forming Pakistan’s official Request for Support to the Global Shield, which was presented at the event.
“We are fortunate to have such a broad and committed group of stakeholders with us today. The involvement of international development partners, civil society, and the private sector will be crucial in advancing our shared goals,” stated Aisha Humera Moriani, the ministry secretary.
Hamza Haroon, Regional Director-South Asia from the Climate Vulnerable Forum (CVF-V20), underscored the vital importance of addressing the needs of the most vulnerable communities through disaster insurance programs in Pakistan.
“Introducing climate insurance products for disaster-vulnerable communities, their livelihoods, and infrastructure is a cornerstone of the policy efforts and programs being implemented by the Pakistani government to build climate resilience,” he emphasized. He also recommended, “Engaging with insurance companies to offer various disaster insurance plans for vulnerable communities and sectors will be an essential step for the relevant government organizations, including the Ministry of Finance and the Ministry of Climate Change and Environmental Coordination.”
Mr. Joerg Linke, from GIZ Competence Center Climate, showcased the transformative potential of shock-responsive social protection systems (SRSPs) that could be scaled up in Pakistan for climate-vulnerable communities. He explained that, as the frequency and intensity of climate-related shocks, such as natural disasters, economic crises, and pandemics, increase, SRSPs have become crucial for protecting vulnerable populations.
“By integrating flexibility and responsiveness into traditional social protection mechanisms, SRSPs in Pakistan would not only provide immediate relief during crises and disasters but also help promote long-term resilience and equity,” Joerg Linke stated during his address.
