close
Thursday March 28, 2024

‘IMF to help Pakistan in coping with post-flood economic challenges’

Our sympathies go to the millions of victims of the floods, says IMF Resident chief in Pakistan

By Our Correspondent
September 19, 2022
International Monetary Fund building. —AFP
International Monetary Fund building. —AFP

ISLAMABAD: International Monetary Fund (IMF) Resident chief in Pakistan Esther Perez Ruiz on Sunday said that the IMF is deeply saddened by the devastating impact of floods in Pakistan.

“Our sympathies go to the millions of victims of the floods.

“We will work with others in the international community to support, under the current programme, the authorities’ relief and reconstruction efforts, and especially their ongoing endeavour to assist those affected by the floods while ensuring sustainable policies and macroeconomic stability,” she added.

News Desk adds: Meanwhile, a local media outlet, quoting Esther Perez Ruiz, said that the IMF will also help Pakistan face the post-flood economic challenges. She added that the IMF was aware of the estimated loss to Pakistan due to flood disaster.

Earlier in the month, the Pakistani government hinted at reaching out to global lenders, including International Monetary Fund (IMF), World Bank (WB), Asian Development Bank (ADB) and others for monetary assistance to deal with devastating floods in the country.

According to sources privy to the matter, the global lenders will be conveyed a joint report of NDMA, finance and planning and development ministries over the losses during the floods. “A report on initial losses has been prepared and it highlighted a loss of $10 billion to the national economy owing to the devastating floods,” they said, adding that it included damages to infrastructure and harvest.

The report, according to sources, shared that 33 million population and one million homes were affected due to the floods. “IMF will be asked to give monetary assistance under rapid finance instrument while other global lenders will also be asked to release funds for disaster management,” they said.

State Minister for Finance Aisha Ghaus Pasha confirmed the development and said that international lenders will be approached for the rehabilitation of flood-affected areas. “We will complete estimates of damages from floods in two days,” she said.

According to sources privy to the matter, six agreements with Japan, Italy and Spain will be finalised during the ongoing month for debt relief and it will help in deferring payments of $189.5 million.

During the third session, G-20 countries have deferred debt payments of $947 million and after agreements with the three countries, the sources said that the relief will reach $1.13 billion.

The sources within the Economic Affairs Division (EAD) said that the relief will include deferment of the $3.1 million debt from Spain, $1.1 million from Italy and $180 million from Japan.

Moreover, UNSG António Guterres also announced that the UN will strongly advocate for debt swaps with the IMF and World Bank through which developing countries like Pakistan, instead of paying a debt to foreign creditors, would make payments to finance climate projects at home.