National Institutional

The Government of Pakistan, in collaboration with the Asian Development Bank (ADB) and other development partners, established the National Disaster Risk Management Fund (NDRMF) to address critical gaps in disaster risk management, resilience building, and disaster risk financing. Since its establishment, NDRMF has strengthened institutional systems, recruited skilled professionals, and developed comprehensive procedures aligned with donor requirements, including financial management, procurement, project appraisal, gender mainstreaming, and safeguards compliance.

These efforts have led to a significant expansion of the Fund's scope and portfolio from an initial USD 200 million (from ADB and the Australian Government) to USD 420 million, now supported by multiple bilateral and multilateral donors including the ADB, World Bank, DFAT, AFD, SDC, and the Norwegian Government. The Fund is now positioned to serve as Pakistan's central platform for Disaster and Climate Financing, combining programmatic pooled and grant-based funding mechanisms across strategic pillars, and, through the Solidarity Fund, introducing insurance-based risk financing instruments.

Pakistan faces increasing frequency and intensity of climate-induced disasters, placing immense pressure on public resources and exposing institutional weaknesses in disaster risk financing. The absence of a harmonised pooled financing structure undermines predictability, transparency, and alignment with national priorities. Donors require robust fiduciary systems and measurable results. NDRMF, with the support of REMIT and ADB, has designed a revised Fund Architecture comprising a Pooled Fund, Special Windows, and a Solidarity Fund. This architecture needs urgent operationalisation through integration with Pakistan's Public Financial Management (PFM) framework, SAP-based financial systems, and harmonised donor protocols. Without timely implementation, Pakistan risks losing credibility with development partners and delaying CDREP tranche disbursements, hindering NDRMF's role as a premier mechanism for international climate finance.

The Government of Pakistan, in collaboration with ADB and other development partners, established the National Disaster Risk Management Fund (NDRMF) in 2016 as a government-owned, not-for-profit company under Section 42 of the Companies Act, 2017. NDRMF funds investments to reduce socio-economic and fiscal vulnerability to natural hazards and climate change by financing disaster risk reduction, preparedness, and resilience-building.

Initially capitalised through an ADB loan of USD 200 million and bilateral grants, NDRMF has expanded to over USD 420 million with contributions from the World Bank, DFAT/AusAid, AFD, SDC, and the Norwegian Government. Its scope now includes climate change adaptation and mitigation, pandemic preparedness, and food security interventions, supported by strengthened institutional systems, professional staffing, and safeguards compliance.

To respond to evolving priorities, NDRMF in collaboration with REMIT/FCDO and ADB has developed a revised Fund Architecture, including:

• Pooled Fund as the primary programmatic financing mechanism,
• Special Windows for donor-specific or thematic priorities, and
• Solidarity Fund for insurance-based risk financing instruments.

This architecture is designed to reduce fragmentation, improve alignment with Pakistan's PFM framework, enhance donor harmonisation, and increase predictability and transparency in climate and disaster financing. Operationalising this structure is a key policy milestone under ADB's Climate and Disaster Resilience Enhancement Program (CDREP).

Dedicated technical assistance is required to move from design to implementation while integrating fund codes into SAP systems, finalising fund flow protocols, establishing governance frameworks, and building capacity. National experts will lead on the ground, with international experts providing quality assurance and benchmarking.

Funding Architecture

With support from the REMIT Programme (funded by FCDO), NDRMF reformed its funding architecture to align resources with strategic priorities, enhance transparency, and reduce transaction costs. After consultations with development partners, a new framework was developed consisting of three mechanisms:

• Pooled Fund (Core Financing Mechanism) – central vehicle for mobilising and allocating resources from multiple financing partners. Fully integrated with Pakistan's PFM system, including SAP-based FMIS and the Treasury Single Account (TSA). Uses a parent–child fund code system to link financial flows with outcomes and priorities.
• Special Windows (Thematic / Exceptional Financing Channels) – Flexible windows for donor-specific or emerging thematic areas; these remain exceptional and are governed by the same fiduciary and safeguards standards as the pooled fund.
• Solidarity Fund (Risk Financing Window) – Provides rapid, targeted support for disasters and emergencies, introducing insurance-based instruments such as crop insurance and catastrophe bonds; fully integrated within the overall architecture and aligned with CDREP.

This architecture reduces fragmentation, strengthens donor alignment, and creates a predictable, results-oriented system to finance disaster and climate resilience.

Scope of work: Areas of support and key results

The objective is to fully operationalise the NDRMF Pooled Fund as the primary financing vehicle for programmatic delivery under the revised architecture, in alignment with the Business Strategy and Pakistan's PFM framework. The operationalisation will ensure transparent, efficient, and results-based use of resources from multiple financing partners through harmonised processes, integrated systems, and robust governance mechanisms.

Specific objectives include:

• Facilitate institutional alignment among NDRMF, MoF, EAD, MoCC&EC, and development partners for fund operations.
• Design the sequencing and phased implementation plan, including piloting and gradual scaling of pooled fund operations.
• Lead consultations with ministries and donors to resolve coordination and ownership challenges.
• Support the operationalisation of Special Windows and integration of the Solidarity Fund into the overall architecture.
• Develop a results framework for fund operations aligned with CDREP policy matrix and NDRMF Business Strategy.
• Lead capacity-building workshops and training sessions for NDRMF staff and stakeholders.

Expected Results

The implementation of this fund structure will result in:

• A fully operational Pooled Fund integrated with national PFM systems.
• Special Windows and Solidarity Fund launched within the unified architecture, with harmonised fiduciary and safeguards standards.
• Strengthened donor harmonisation and reduced duplication of reporting requirements.
• Improved institutional capacity in fund management, SAP integration, and results-based allocation.
• Direct alignment with the CDREP Policy Matrix and NDRMF's results framework, ensuring that financing contributes to measurable resilience outcomes.

Link to REMIT's ToC and Logframe

If: REMIT is able to provide support for the fund architecture

Then, the government will demonstrate to international partners its commitments and efforts to create institutional arrangements for international climate finance.

Which will eventually lead to:

At output level, An effective institutional mechanism to attract international climate finance will be in place.

At an outcome and impact level, Increased confidence of international partners to forward funds for climate change related interventions.

Key risks

Mitigation measures are aligned with the architecture and governance framework.

1. Aligning the competing interests of key federal ministries

The ministries of finance (MoF), planning (MoPDSI), climate change (MoCC&EC), and Economic Affairs Division (EAD) hold significance in climate change and international finance. These ministries guard their mandates, making buy-in and consensus challenging. To navigate the landscape and engage decision-makers, the team will engage via the NDRMF platform; all secretaries of these ministries are members of the NDRMF board, aiding consensus-building.

PEA, risks, and mitigation measures

Estimated budget

Expert requirements

The expert will be required to have:

• Master's in Public Policy, Governance, or related field.
• Minimum 15 years' experience in institutional reforms, donor coordination, or governance strengthening in Pakistan.
• Demonstrated expertise in change management and multi-stakeholder consensus-building.
• Experience in results-based management frameworks.
• Ability to work flexibly and at pace.

Reporting

The expert will report to the Output Lead and Team Leader of the REMIT Programme.

Interested applicants are welcome to apply by September 9, 2025.