Migration, Remittances and Climate Resilience: Do Financial Literacy and Disaster Risk Reduction Orientation Help to Improve Adaptive Capacity in Pakistan?

Communities in the Hindu Kush Himalayan (HKH) region of Pakistan are highly vulnerable to climate change. Capacity building of local communities is integral to adopt an evolving strategy to address adverse effects of climate change. This paper examines the significance of adaptive capacity through training and orientations and its efficacy to address climate induced hazards. Data from remittance receiving 246 households in treatment group and 247 households in control group were collected from selected villages of Districts Hunza and Nagar in Gilgit-Baltistan, Pakistan. The difference in difference (DiD) method was used to examine the impact of the intervention—adaptation and effects. The results of the study revealed that enhanced capacity building of local communities in terms of financial literacy, investment in flood preparedness and adoption of disaster risk reduction have significant impact and corelation with improved resilient planning strategies and practices. The study recommends further actions, trainings and to governmental and non-governmental organizations to emphasize on proper utilization of remittances and to orient the mountain communities about proper plans and actions to mitigate the climate change impact.