Role of Microfinance in Mitigating Disasters in Pakistan

  • Hafiz Waqas KAMRAN Faculty of Business Administration, Iqra University, Pakistan
  • Abdelnaser OMRAN Faculty of Engineering Sciences, Bright Star University, Libya


The study is aimed at exploring the usage of microfinance and related services to mitigate the effect of natural disasters and risk, both at community and industry level in the current Pakistani context. For this purpose, overall work is carried out based on the various strategies adopted by the Micro Finance Institutes MFIs specifically disaster loan funds, disaster preparedness, designing of new products, sustainability of MFIs through post-disaster approaches. It also provides the evidence to recognize the MF roles within disaster risk reduction and mitigation measures.  Along with the risk reduction, it delivers the context for poverty alleviation through provision of diversified earning sources and rehabilitation of local community. It is the first study to explore the role of MFIs in disaster risks reduction and mitigation both at community and industry level in the economy of Pakistan.


[1] Aban Haq, S.M.A. 2013. Options For Managing Disaster Risk, 16, pp. 12.
[2] Anand Kumar, T., and Newport, J.K. 2005. Role of microfinance in disaster mitigation. Disaster Prevention and Management: An International Journal, 14(2): 176-182. DOI:10.1108/09653560510595173
[3] Anand Kumar, T., and Newport, J.K. 2007. Institutional preparedness and sustainability of micro finance institutions during post disaster scenario. Disaster Prevention and Management: An International Journal, 16(1): 21-32.
[4] Asgary, A., Anjum, M.I., and Azimi, N. 2012. Disaster recovery and business continuity after the 2010 flood in Pakistan: Case of small businesses. International Journal of Disaster Risk Reduction, 2: 46-56. DOI:
[5] Beniston, M. 2004. The 2003 heat wave in Europe: A shape of things to come? An analysis based on Swiss climatological data and model simulations. Geophysical Research Letters, 31(2): 1-4. 0094. DOI:10.1029/2003GL018857
[6] Cavallo, E., Powell, A., and Becerra, O. 2010. Estimating the direct economic damages of the earthquake in Haiti. The Economic Journal, 120(546): F298-F312. DOI:
[7] Christoplos, I., Mitchell, J., and Liljelund, A. 2001. Re‐framing risk: The changing context of disaster mitigation and preparedness. Disasters, 25(3): 185-198. DOI: 10.1111/1467-7717.00171
[8] Dhakal, N.H., Simkhada, N.R., and Ozaki, M. 2019. Microfinance for Disaster Recovery: Lessons from the 2015 Nepal Earthquake. Available at:
[9] Eggers, F. 2020. Masters of disasters? Challenges and opportunities for SMEs in times of crisis. Journal of Business Research, 116: 199-208. DOI: 10.1016/j.jbusres.2020.05.025
[10] Fenton, A., Paavola, J., and Tallontire, A. 2015. Microfinance and climate change adaptation: an overview of the current literature. Enterprise Development and Microfinance, 26(3): 262-273. DOI:
[11] Fenton, A., Tallontire, A., and Paavola, J. 2017. Vulnerability of microfinance institutions to climate risk in the Satkhira District, Southwest Bangladesh. Available at:
[12] Gaiha, R., Hill, K., and Thapa, G. 2010. Natural disasters in South Asia: The Australian National University, Australia South Asia Research Centre.
[13] Haque, C.E. 2003. Perspectives of natural disasters in East and South Asia, and the Pacific Island States: Socio-economic correlates and needs assessment. Natural hazards, 29(3): 465-483. DOI:10.1023/A:1024765608135
[14] Hassan, A. 2011. Disaster risk mapping district Swat (Vol. IV, pp. 92). Evaluation & Research Report NRSP-MER/2011-IV, Islamabad, Pakistan: National Rural Support Programme. Available at:
[15] Havko, J., et al. 2017. Financing the disaster resilient city in the Slovak Republic. Procedia Engineering, 192: 301-306. DOI: 10.1016/j.proeng.2017.06.052
[16] Hood, J. 2005. Emerging Risks in the 21st Century: An Agenda for Action. Risk Management, 7(2): 69-70.
[17] Joshi, M.Y., Flacke, J., and Schwarz, N. 2020. Do microfinance institutes help slum-dwellers in coping with frequent disasters? An agent-based modelling study. International Journal of Disaster Risk Reduction, 101627. DOI:
[18] Katongole, C. 2020. The role of disaster risk financing in building resilience of poor communities in the Karamoja region of Uganda: Evidence from an experimental study. International Journal of Disaster Risk Reduction, 45: 101458. DOI: 10.1016/j.ijdrr.2019.101458
[19] Kazama, M., and Noda, T. 2012. Damage statistics (Summary of the 2011 off the Pacific Coast of Tohoku Earthquake damage). Soils and Foundations, 52(5): 780-792. DOI:
[20] Khandker, S.R. 2005. Microfinance and poverty: Evidence using panel data from Bangladesh. The World Bank Economic Review, 19(2): 263-286. DOI:
[21] Lau, W.K., and Kim, K.-M. 2012. The 2010 Pakistan flood and Russian heat wave: Teleconnection of hydrometeorological extremes. Journal of Hydrometeorology, 13(1): 392-403. DOI: 10.1175/JHM-D-11-016.1
[22] Lott, F.C., Christidis, N., and Stott, P.A. 2013. Can the 2011 East African drought be attributed to human‐induced climate change? Geophysical Research Letters, 40(6): 1177-1181. DOI:
[23] Marincioni, F., Appiotti, F., Pusceddu, A., and Byrne, K. 2013. Enhancing resistance and resilience to disasters with microfinance: Parallels with ecological trophic systems. International Journal of Disaster Risk Reduction, 4: 52–62. DOI:
[24] Martzys, R. 2006. Microfinance Institutions: Profitability at the service of Outreach. A study of Microfinance Industry in the ECA region. Unpublished MA Thesis.
[25] Memon, N. 2011. Climate Change and Natural Disasters in Pakistan; Strengthening Participatory Organization (SPO): Islamabad, Pakistan.
[26] Mitrović, V. 2015. Resilience: detecting vulnerability in marginal groups. Disaster Prevention and Management, 24(2): 185-200. DOI:
[27] Moşteanu, N.R., Faccia, A., and Cavaliere, L.P.L. 2020. Disaster Management, Digitalization and Financial Resources: key factors to keep the organization ongoing. In Proceedings of the 2020 4th International Conference on Cloud and Big Data Computing (pp. 118-122).
[28] Mujeeb, S., and Jaffery, S. 2007. Emergency blood transfusion services after the 2005 earthquake in Pakistan. Emergency Medicine Journal, 24(1): 22-24. DOI: 10.1136/emj.2006.036848
[29] Nation, T. 2016. Disaster Risk Management Fund established with ADB loan. Retrieved 03-07-19. Available at:
[30] Pantoja, E. 2002. Microfinance and disaster risk management: Experiences and lessons learned. The World Bank. Washington, DC.
[31] Parvin, G.A., and Shaw, R. 2013. Microfinance institutions and a coastal community's disaster risk reduction, response, and recovery process: a case study of Hatiya, Bangladesh. Disasters, 37(1): 165-184. DOI:
[32] Pielke Jr, R. A. 2005. Are there trends in hurricane destruction. Nature, 438: 2-29. DOI: 10.1038/nature04426
[33] Raschky, P., and Chantarat, S. 2020. Natural Disaster Risk Financing and Transfer in ASEAN Countries. In Oxford Research Encyclopedia of Natural Hazard Science. DOI:
[34] Rauf, S.A., and Mahmood, T. 2009. Growth and performance of microfinance in Pakistan. Pakistan Economic and Social Review, 99-122.
[35] Roy, N., Shah, H., Patel, V., and Coughlin, R.R. 2002. The Gujarat earthquake (2001) experience in a seismically unprepared area: community hospital medical response. Prehospital and Disaster Medicine, 17(4): 186-195. DOI: 10.1017/S1049023X00000947
[36] Sakai, R. 2011. Microfinance for Poverty Reduction. (Bachelor Bachelor Thesis), Japan. Available at: (7908079)
[37] Sawada, Y., and Takasaki, Y. 2017. Natural Disaster, Poverty, and Development: An Introduction. World Development.
[38] Schmude, J., Zavareh, S., Schwaiger, K. M., and Karl, M. 2018. Micro-level assessment of regional and local disaster impacts in tourist destinations. Tourism Geographies, 20(2): 290-308. DOI:
[39] Shyamaladevi, H. 2020. Role of Micro Finance in Disaster Management. Studies in Indian Place Names, 40(12): 986-990.
[40] Sserwanga, A., Kiconco, R. I., Nystrand, M., and Mindra, R. 2014. Social entrepreneurship and post conflict recovery in Uganda. Journal of Enterprising Communities: People and Places in the Global Economy, 8(4): 300-317. DOI: 10.1108/JEC-02-2014-0001
[41] Tamamoto, M. 2005. After the tsunami: How Japan can lead. Far Eastern Economic Review, 168(2): 10-18.
[42] Tariq, M.A.U.R., and Van de Giesen, N. 2012. Floods and flood management in Pakistan. Physics and Chemistry of the Earth, Parts A/B/C, 47: 11-20.
[43] Torres, A. P., Marshall, M. I., and Sydnor, S. 2019. Does social capital pay off? The case of small business resilience after Hurricane Katrina. Journal of Contingencies and Crisis Management, 27(2): 168-181. DOI:
[44] Ullah, I., and Khan, M. 2017. Microfinance as a tool for developing resilience in vulnerable communities. Journal of Enterprising Communities: People and Places in the Global Economy, 11(2): 237-257. DOI:10.1108/JEC-06-2015-0033
[45] Vakis, R. 2006. Complementing natural disasters management: the role of social protection. Washington, DC: The World Bank Social Protection Paper, 543.
[46] Weiss, J., and Montgomery, H. 2005. Great expectations: microfinance and poverty reduction in Asia and Latin America. Oxford Development Studies, 33(3-4): 391-416. DOI:10.2139/ssrn.1396122
[47] Yao, T., et al. 2012. Different glacier status with atmospheric circulations in Tibetan Plateau and surroundings. Nature Climate Change, 2(9): 663-667. DOI: 10.1038/nclimate1580
[48] FAO 2017. FAO in Emergineces. Available at:
[49] NIDM. 2017. Training Courses and Participation. Available at:
[50] PMN. 2017. Micro Watch. Retrieved 01-07-17. Available at:
[51] PPAF. 2017. Disaster Management Strategy and Investment Program (1st ed., pp. 63).
[52] RSPN. 2017. USAID-RSPN TAHAFUZ Project – Building Resilience through Community Based Disaster Risk Management in the Sindh Province of Pakistan. Retrieved 03-07-17. Available at:
How to Cite
KAMRAN, Hafiz Waqas; OMRAN, Abdelnaser. Role of Microfinance in Mitigating Disasters in Pakistan. Journal of Environmental Management and Tourism, [S.l.], v. 14, n. 1, p. 150 - 159, mar. 2023. ISSN 2068-7729. Available at: <>. Date accessed: 23 mar. 2023. doi: