Gilgit-Baltistan needs effective disaster insurance strategies urgently

Gilgit-Baltistan is an important region in Pakistan, located where the Himalayas, Karakoram, and Hindu Kush meet. It has over 7,000 glaciers that provide about 75% of the country’s water supply. These glaciers not only ensure freshwater availability but also support energy production. However, climate change is threatening these glaciers. They face risks from extreme weather events like flash floods and Glacial Lake Outburst Floods (GLOFs). The United Nations Development Programme has identified around 30 sites in Gilgit-Baltistan that are highly vulnerable to these disasters. Two years ago, the region suffered severe flash floods, damaging land, homes, and power facilities. Current disaster response measures are not sufficient for Gilgit-Baltistan's needs. Traditional compensation methods are slow and fail to reach many affected people. Experts suggest a mix of hard measures, such as building protective structures, and soft measures, like disaster insurance, to manage risks better. Countries like India and Bangladesh have successfully implemented disaster insurance programs to help people recover from extreme weather. In Pakistan, however, the approach remains outdated, heavily reliant on post-disaster aid. Many people in Gilgit-Baltistan report they did not receive compensation after disasters. There is a preference for government-provided insurance due to distrust in private companies. The government may need to collaborate with private sectors to develop new insurance schemes. Innovative financing options, including international climate finance, could be explored to support accessible flood insurance in the region. Pakistan currently struggles to attract international funding due to poor regulatory frameworks and a lack of bankable climate projects. Strengthening these regulations and creating robust climate data can help the country qualify for such funding. International organizations can also support community initiatives in Gilgit-Baltistan, helping to build resilience against future disasters.