Pakistan secures more than $9 billion in aid pledges to rebuild

Shehbaz Sharif, Pakistani Prime Minister, and Antonio Guterres, UN Secretary General, during a press conference in Geneva, January 9, 2023. REUTERS - DENIS BALIBOUSE

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Pakistan on Monday secured more than $9 billion in international aid pledges to rebuild after devastating floods last year and wants to serve as a role model for future victims of the climate crisis.

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"

 ," Pakistani Foreign Minister Bilawal Bhutto Zardari warned in an interview with China. AFP, after the International Donors Conference, held Monday in Geneva.

The success of the Conference shows that Pakistan “

 ”, he underlined after the presentation of a detailed plan for the sustainable recovery of the country.

Prime Minister Shehbaz Sharif, at the head of a large delegation, stressed that his country was engaged in a " 

 " to meet immense needs.

In July, the country was devastated by massive floods that claimed 1,700 lives and affected more than 33 million people.

Mechanisms for monitoring the use of funds

The commitments made on Monday, in the form of donations and loans in particular, represent just over half of the 16.3 billion dollars (15.3 billion euros) deemed necessary to rebuild the country so, in particular, that it is more resistant to the onslaught of climate change.

France has promised 360 million euros in projects to help with reconstruction but also an additional 10 million for emergency aid.

The United States and China have pledged an additional $100 million, and the Islamic Development Bank Group has pledged to fund $4.2 billion over the next three years.

Sums welcome but insufficient given the extent of the damage, believes Farooq Tariq, secretary general of the Kissan Rabita Committee (PKRC), a network of Pakistani peasant organizations.

Very active in terms of climate, Farooq Tariq demonstrated at COP27 in Egypt to demand an increase in international aid to his country after the massive floods.

“It's good and we thank the international community for this support, but it's peanuts compared to the extent of the damage we have suffered.

Economic losses were estimated at $30 billion.

33 million people have lost their main income or had to leave their homes... And thousands of them are still on the streets.

I have visited these provinces several times and I have seen that the water is still there in many places in the province of Sindh.

There is no more agriculture.

70% of seeds were lost in the provinces of Sindh and Balochistan.

So the money has to go to the farmers and the reconstruction of the houses.

The money should not be used to pay farmers' loans.

Pakistan is going through a severe economic crisis right now...

and we are afraid that the money that arrives will be used to reimburse the International Monetary Fund or the World Bank.

We will protest loud and clear if this is the case.

»

Faced with the risks of embezzlement of these colossal sums, the UN and Pakistan have promised mechanisms for monitoring and evaluating the use of the funds.

An international support group, in which France wishes to participate, will accompany the implementation of the international windfall.

The head of Pakistani diplomacy sees "

 " and believes that " 

" and stimulate their growth.

Last summer's devastating floods - which killed more than 1,700 people and affected more than 33 million others - and the global energy crisis have increased the pressure on the Pakistani economy, plunging the country into an extremely difficult financial situation.

UN chief Antonio Guterres, who also came to the shores of Lake Geneva, immediately called for “ 

 ” and a reform of the international financial system, of which he denounced the “

 ”, to help Pakistan.

He deplored that this international financial system does not provide enough assistance to middle-income countries, in particular by reducing their debt, when they need it most to face climate challenges.

Moreover, in front of journalists, Shehbaz Sharif urged the International Monetary Fund (IMF) to reduce the pressure on his country.

" 

" in the reforms that the Fund is demanding in order to disburse a new tranche of financial aid and thus reassure the markets, he insisted.

Finance Minister Ishaq Dar was also due to meet an IMF delegation in Geneva.

And the Fund is not the only one with requirements.

The UK stressed that the “ 

 ” must bear its share of the burden and the World Bank warned: “ 

 The Bank has, however, promised a loan of two billion.

Losses and damages

Pakistan, the fifth most populous country in the world with 216 million people, is responsible for less than one percent of greenhouse gas emissions.

But it is one of the most vulnerable to the increasing number of extreme weather events.

The country is also one of those who supported at COP27 in November the creation of the “loss and damage” fund aimed at supporting southern countries in the face of the consequences of global warming.

" 

 ", a country "

 ", Mr. Guterres said. 

►

Of the $16.3 billion needed to fund Pakistan's Resilient Recovery, Rehabilitation and Reconstruction Plan, the government estimates it can fund half through its own budget and public-private partnerships, but needs from the international community to pay the rest.

(With AFP)

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