Pakistan floods: International donors pledge over $9bn
More than $9 billion (£7.4 billion) has been given by donors from around the world to assist Pakistan in recovering from the disastrous floods that struck the nation last year.
It represents more than half of Pakistan’s estimated $16.3 billion recovery budget.
At least 1,700 people were killed by the floods of last year, and eight million more were left homeless.
The commitments come while Pakistan is still negotiating the terms of the subsequent instalment of a global bailout.
Hina Rabbani Khar, Pakistan’s state minister for foreign affairs, remarked during a climate summit co-hosted by the United Nations (UN) in Geneva, “Today has genuinely been a day which offers us great optimism.”
She continued, “I believe the message from the world is clear: the world will support people who experience any national disaster.
Some of the largest funders included Saudi Arabia, the World Bank, and the Islamic Development Bank.
Contributions were also made by the US, China, France, and the European Union.
It followed a request for significant funding made by UN Secretary General Antonio Guterres to aid Pakistan in recovering from a “climate disaster of historic scale.”
IMF bailout
Pakistan reaffirmed its intention to completing a bailout deal with the International Monetary Fund on the margins of the summit (IMF).
It happened at a time when the IMF still hasn’t authorised the release of $1.1 billion that was scheduled to happen in November of last year.
The 220 million-person country has been working hard to stabilise its economy for years.
To help preserve electricity, the government mandated this week that marketplaces and shopping centres close at an earlier time each day.
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The majority of Pakistan’s electricity is produced utilising imported fossil fuels.
The world’s energy prices increased last year, further straining the nation’s already precarious finances.
The nation requires foreign currency, notably US dollars, to pay for those energy imports.
The Pakistani government’s foreign exchange holdings, however, decreased by almost 50% last year.
