Pakistan striving for $10Billion fund to aid recovery efforts
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In New York, caretaker Prime Minister Anwaarul Haq Kakar announced that Pakistan is making efforts to unlock $10 billion in pledged donations to aid its recovery from devastating floods. These rebuilding initiatives are contingent on securing the promised funding.
Donors worldwide had stepped forward to assist Pakistan following last year's devastating floods, with the $10 billion representing over half of Islamabad's estimated recovery needs. "In all our interactions, the key point has been to align our projects with the pledged funds, ensuring their conversion into tangible financial support," Kakar stated during an interview with PTV on the sidelines of the United Nations General Assembly.
He added, "We are working to ensure that the promised funds are disbursed to Pakistan and utilized for the benefit of flood-affected individuals." Securing this funding is critical for Pakistan, but the government has yet to receive it, raising concerns about future debt obligations.
An IMF bailout was postponed until July of this year due to concerns about a lack of fiscal reform. Key contributors included the Islamic Development Bank with $4.2 billion, the World Bank with $2 billion, Saudi Arabia with $1 billion, along with contributions from the European Union, China, France, and the United States. The floods, exacerbated by global warming, impacted at least 33 million people and resulted in over 1,700 deaths from mid-June 2022 to mid-November of the same year.
During his address to the United Nations General Assembly, Kakar mentioned that the total cost of the resiliency and recovery plan had been estimated at $13 billion, and specific projects were being presented to donors.
He expressed hope that development partners would prioritize fund allocation and urged developed nations to fulfill their commitment of providing $100 billion annually in climate financing to less-developed nations.
