The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved $ 25 million for National Disaster Risk Management Fund (NDRMF).
The ECC which met with Minister for Finance Mohammad Ishaq Dar in the Chair, in consideration of a proposal by Economic Affairs Division(EAD) approved the fund for NDRMF, according to the press release issued here.
The fund which aims to have a government-owned sustainable mechanism to support disaster risk financing instruments that can enhance country’s resilience to natural calamities. The fund will enable the government to immediately and effectively respond to natural calamities.The Asian Development Bank has signalled to assist the project by providing $ 1.2 billion as loan for the fund.
EAD and ADB, signed the loan agreement on December 2, 2016 sanctioning the first tranche of $200 million of the total allocated fund.NDRMF is being established as a public limited company under Section 42 of the Companies Ordinance 2016 for sustainable mechanism and permanent instrument to enhance Pakistan’s resilience to any future disaster. The focus of the Fund is on disaster risk reduction; design, development and seeding of disaster risk financing strategies and instruments; and partnerships with other organisations to provide relief and recovery support, including livelihood restoration initiatives, and reconstruction and rehabilitation of key public infrastructure.
NDRMF is being established as a public limited company under Section 42 of the Companies Ordinance 2016 for sustainable mechanism and permanent instrument to enhance Pakistan’s resilience any future calamity. The focus of the Fund is on disaster risk reduction; design, development and seeding of disaster risk financing strategies and instruments; and partnerships with other organisations to provide relief and recovery support, including livelihood restoration initiatives, and reconstruction and rehabilitation of key public infrastructure.
The total outlay of the fund would be $3 billion out of which ADB will provide $1.2 billion as loan for the fund. It has been reported that the Australian government is also providing co-financing grant for the fund.Apart from the above-mentioned sources, Norway Belgium and Switzerland have shown interest in contributing to the fund.
