The National Disaster Risk Management Fund (the Fund, NDRMF) is a not-for-profit company incorporated with the Securities and Exchange Commission of Pakistan (SECP), under Section 42 of the Companies Ordinance 1984. It is a government-owned non-banking financial intermediary with a corporate structure.
The NDRMF is working to reduce the socio-economic and fiscal vulnerability of the country and its population to natural hazards. It is doing so by prioritizing and financing investments in disaster risk reduction and preparedness which have high economic benefits, taking into account climate change, as well as disaster risks and their impacts. The NDRMF will also attempt to strengthen the technical knowledge base in disaster and climate change risks and impacts so that it may develop the market for the transfer of residual risks of natural hazards which cannot be mitigated.
The initial financing of the NDRMF is through an Asian Development Bank (ADB) loan fund to the Government of Pakistan, equivalent of $200 million and an Australian grant equivalent of $3.4 million. The Government will award this money to the NDRMF as a grant, for on-granting by NDRMF to eligible Fund Implementing Partners. The NDRMF will finance up to 70% of the cost of eligible subprojects that will enhance Pakistan’s resilience to extreme weather events and other natural hazards while 30% will be contributed by the FIPs.