Pakistan, Feb. 19 -- The Asian Development Bank (ADB) has recommended Pakistan to introduce mandatory disaster insurance for residential areas, further adding, that a flat disaster insurance charge could also be either included in utility bills or added as a surcharge to property tax bills.

Recent times have seen Pakistan increasingly exposed to natural hazards the likes of floods, cyclones, droughts and earthquakes. This increase in natural calamities over the last 15 years has caused disastrous losses of lives, damage to the country's economy, and the reversal of its development gains.

Financing disasters is a grave challenge for the government, which estimates floods alone to cause losses between three and four per cent of its Gross ...