Disaster risk financing for anticipatory action in Pakistan

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A key consideration for the effective integration of anticipatory action (AA) into disaster risk management (DRM) is the financing of AA related costs. AA interventions have been shown to have the potential to contribute to the overall cost effectiveness of disaster related spending, making disaster risk financing (DRF) go further. Planning, preparing and implementing AA poses specific build costs associated with building the necessary capacities and systems, and fuel costs associated with activating pre agreed plans upon reaching a pre-defined trigger. In Pakistan, build costs and fuel costs for AA interventions to date have been largely donor financed. This technical paper assesses entry points and opportunities for integrating AA into government systems witha focus on public DRF. Despite limited evidence of effective mainstreaming into public DRF systems, significant entry points exist and can be leveraged. Pakistan’s overarching policy and regulatory frameworks governing DRM, in particular the National Disaster Management Act (2010), provide policy space for financing costs of threatening disasters. Ongoing reforms of the country’s DRF architecture (in the context of the National DRF Strategy Formulation in particular) provide a timely opportunity for AA mainstreaming. Elements of build finance are already being provided not only through project based external finance, but also via Pakistan’s annual development budgets, which could be further scaled up to build and maintain AA systems.Given the inherent need for AA fuel finance to be made available quickly upon trigger activation, it is potentially more suitable to make finance available close to the level where impacts are felt and AA is taken. The analysis includes a specific case study focused on Sindh province. The paper identifies some key opportunities for mainstreaming AA into public systems at the national and provincial levels.

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