Donors ‘exceed’ Pakistan’s expectations with $10bn pledges


GENEVA: Pakistan will receive over $10 billion from donors on Monday to help it recover from the devastating floods of last year.

The meeting in Geneva brought together officials from forty nations, private donors, and international financial institutions. Islamabad is seeking assistance to cover approximately half of the $16.3 billion recovery bill.

Pakistan’s Resilient Recovery, Rehabilitation, and Reconstruction Framework, which it presented on Monday, states that it will require $16.3 billion over the course of the next three years to begin rebuilding and enhancing its capacity to withstand climate change.

Donations pledged at the Geneva conference

  • Islamic Development Bank: $4.2bn
  • World Bank: $2bn
  • Asian Development Bank: $1.5bn
  • Asian Infrastructure Investment Bank: $1bn
  • Saudi Arabia: $1bn
  • France: $384m
  • China: $100m
  • US: $100m
  • EU: $93m
  • Germany: $88m
  • Japan: $77m
  • UK: $10m
  • Azerbaijan: $2m

The country should be able to cover half of the cost, according to the government, but the rest should be paid for by the international community.

Hundreds of millions of dollars in pledges were made before the pledges portion of the conference even started, indicating that nations had heeded that call.

Financial institutions

Marriyum Aurangzeb, Minister of Information, said that the Islamic Development Bank gave the most money, $4.2 billion.

Muhammad Al Jasser, president of the Islamic Development Bank, stated in Geneva, “I am pleased to announce that the Islamic Development Bank group, as part of contributing to the achievement of Pakistan’s climate resilience and development objectives, pledges a financing amount of $4.2 billion over the next three years.”

Pakistan was urged by the World Bank to “keep spending within sustainable limits,” and it made a promise of $2 billion.

Martin Raiser, the World Bank’s vice president for the South Asia region, stated, “Without additional fiscal and structural reforms, a truly resilient recovery will not be possible.”

He advised Pakistan to choose “more progressive, broader-based taxation” and “address the inefficiencies that are muting investment.”

The Asian Development Bank (ADB) also committed $1.5 billion to flood recovery efforts.

ADB Vice President Shixin Chen stated at the conference that over the next three years, the ADB would reprioritize up to $1 billion for climate and disaster risk reconstruction as well as resilience support.

He added that agriculture and natural resources, urban services, social protection, health, and public financial management were the most important support areas.

On Twitter, Ms. Aurangzeb also stated that the Asian Infrastructure Investment Bank had pledged $1 billion to the “climate resilient infrastructure & adaptation” initiative as part of the “build back better” initiative.

Pledges from other nations

According to the information minister, Saudi Arabia had committed $1 billion, according to APP. She also stated that Japan had committed $77 million, while China had offered $100 million.

Reuters was informed by a senior USAID official that the United States would contribute an additional $100 million to Pakistan’s recovery from the devastating floods that occurred last year.

On the sidelines of a significant conference in Geneva, USAID Deputy Administrator Isobel Coleman told reporters, “I am delighted to announce that the United States is making an additional $100 million commitment to Pakistan to help it recover from the devastating 2022 monster monsoon floods.”

In light of Pakistan’s recent flood losses, French President Emmanuel Macron stated that Paris was prepared to assist the nation in its negotiations with financial institutions. He informed the conference via video link that his nation would contribute $345 million, or 360 million euros.

Mr. Macron stated that France would continue to provide the nation with expertise as well as some financial support, and that the nation would also receive an additional 10 million euros in emergency assistance.

Ursula von der Leyen, head of the European Commission, announced an additional 10 million euros in humanitarian aid and stated that the European Union was contributing 500 million euros to the reconstruction of Pakistan.

She also announced an additional 10 million euros, bringing Pakistan’s total aid to 172 million euros.

Additionally, Pakistan and the EU came to an agreement on a package worth 87 million euros on Monday to enhance this cooperation further.

In the meantime, Britain provided over 9 million pounds for the purpose.

According to UK Development Minister Andrew Mitchell, “if Pakistani taxpayers are seen to be playing a core part in this effort,” it would be much simpler for the world to assist Pakistan.

For the development of drainage systems and rainwater retention basins, Germany is contributing $90 million. It has already pledged approximately $71.6 million for damaged infrastructure reconstruction.

Jochen Flas­barth, the state secretary for Germany’s Economic Cooperation and Development Ministry, stated, “This is a crisis that Pakistan cannot overcome alone,” when he addressed the gathering. He stated, “It is essential that we support Pakistan not only in its immediate reconstruction but also in its improved and sustainable adaptation to climate change.”

Ms. Aurangzeb also tweeted that Azerbaijan had pledged $2 million for resilient rehabilitation and recovery.

Source: Dawn  News


Leave A Reply