Natural Disaster Damages $320 Billion, Disaster Insurance the Need of the Hour: Islamabad Chamber of Commerce

Islamabad, August 18, 2025 : Devastating floods triggered by monsoon rains have claimed at least 323 lives in Khyber Pakhtunkhwa, Pakistan, leaving hundreds injured, over 150 missing, and thousands displaced. The disaster is wreaking havoc particularly in the Buner district, where entire villages have been swept away, forcing survivors into temporary shelters. More rain is forecast, threatening to worsen the already dire situation.

Former President of the Islamabad Chamber of Commerce, Shahid Rasheed Butt, expressed grief over the loss of life and criticized the country’s lack of preparedness for the predicted monsoon surge. He stated that despite weather warnings, adequate preparations were not made, and constructions obstructing waterways exacerbated the disaster. Butt, pointing to the global economic impact of natural disasters, said that $320 billion in damages occurred globally in 2024, of which only $140 billion was insured. He highlighted that globally, insurance coverage is a mere seven percent, while in Pakistan it’s less than two percent. He reminded authorities that the 2022 floods caused over $30 billion in damages and affected 33 million citizens, yet protective measures remain insufficient.

Butt, emphasizing the cost-benefit of upfront investment in resilient infrastructure, stated it costs ten times less than post-disaster rehabilitation. He advocated for promoting disaster insurance as a crucial long-term strategy and warned that without decisive intervention, the economic toll of floods will continue to rise.