Pakistan expects $8.3bn lending from Geneva moot

ISLAMABAD: Pakistan is expecting concessional lending from multilateral financial institutions (MFIs) during the upcoming International Donors Conference for reconstruction in the flood-affected areas.

Pakistan will make a request for provision of $8.3 billion from international donors during the conference scheduled to be held in Geneva on January 9.

Although Islamabad will make a request for provision of grants of $500 million, a major chunk of identified financing gap of $8.3 billion is expected to be poured into the shape of borrowed concessional loans. Pakistan is all set to utilise Rs400 billion for providing relief, rehabilitation, and reconstruction for flood-related spending during the current fiscal year.

Out of $16.3 billion needed for reconstruction, Pakistan will seek $8.3 billion from the international donors during the conference, while the remaining $8 billion resources will be spared and utilized from own budgetary resources during the phases of short to medium term of three to five years and then long-term plans for eight to 10 years.

“We have so far spent $1.5 billion during the phases of early rescue, relief, and rehabilitation efforts and it is estimated that total development and current spending will touch Rs400 billion mark for the current fiscal year,” said Federal Secretary Planning Syed Zafar Ali Shah while talking to reporters here on Thursday. Pakistan has so far utilized $1.5 billion during the early phase of rescue and relief and its total utilization of flood related expenditures will go up to Rs400 billion till June 30, 2023. The government, he said, had also informed the IMF about flood related funding including development side. He said Sindh was going to utilize Rs60 billion and Balochistan Rs20 billion on flood related spending. He said the Post Disaster Needs Assessment (PDNA) stood at $30.1 billion which was also verified by the international donors, including the World Bank, ADB, the EU and the UN. The need assessment was estimated to the tune of $16.3 billion which secretary planning termed the basic minimum need. Under the reconstruction phase, he said the government would provide assistance for construction of 250 square feet housing units.

He said out of total losses and damages of $30.1 billion, the major chunk of losses of $20 billion occurred in Sindh, $4 billion in Balochistan and remaining in other parts as well as within inter-provincial infrastructure. Now the need assessment has also been distributed to the same proportions as the need assessment of Sindh stands at $7 to $8 billion, Balochistan $2.75 billion and remaining for inter-provincial requirements for infrastructure developments. The secretary planning said that the federal government had so far utilized Rs145 billion development funding out of total authorized/released funds of Rs255 billion. The foreign aid received stands at Rs52 billion so far. He said the government had allocated Rs727 billion for the Public Sector Development Program (PSDP) and the allocated funds were protected for the current fiscal year 2022-23.