Pakistan has received $2.8 billion from international creditors against the $11 billion pledges made in the Geneva Conference for the flood-affected population so far, and it could spend only half of the received amount on the flood victims, with the remaining going for budget financing. Almost half of the total disbursements of $2.8 billion were on account of non-flood-related loans, mainly given in the shape of oil financing and budgetary support. The Ministry of Economic Affairs has termed the $2.8 billion disbursement a significant achievement, as 20% releases were made so far against over $8 billion commitments for various projects. Read:‘Children suffered most in 2022 floods’ On Tuesday, Pakistan apprised the international donors’ community that it has received $2.8 billion so far against the $11 billion pledges made about one-and-a-half years ago. Minister for Economic Affairs Ahad Khan Cheema shared the numbers during the 4th meeting of the International Partners Support Group (IPSG), according to a press statement. The minister said that against the $11 billion pledges made at the “International Conference on Climate Resilient Pakistan” held in Geneva, $2.8 billion were disbursed up to April 2024. Pakistan had knocked the doors of the world community after the 2022 flash floods caused unprecedented damages. The United Nations-led damage and need assessment report had estimated the cost of reconstruction of the flood-affected areas at $16.3 billion but the country received $11 billion pledges that, too, were not the new commitments. The majority of the lenders had indicated their existing financing pipelines to Pakistan as pledges for the flood victims. The Support Group meeting marked almost two years since the devastating floods of 2022, aiming to review the progress of flood recovery and realign efforts for a resilient Pakistan. Compared to the massive needs, a small amount has actually been spent on the ground, as out of $2.8 billion, $1.35 billion were in fact disbursed for non-flood purposes. The then-finance minister Ishaq Dar had said that almost 90% of the pledges made by the international community at the Geneva conference for flood-hit Pakistan were project loans that will be disbursed over the next three years. The highest amount of the project loans, $4.2 billion, had been committed by the Islamic Development Bank. However, so far, the IDB disbursed $65 million in project financing and $200 million against the oil facility. The Asian Development Bank had committed $500 million but so far only $98 million has been disbursed by the regional lender. The Asian Infrastructure Investment Bank had also promised $1 billion but has so far given $250 million in non-flood budget support. The World Bank committed $2 billion and has so far released nearly $1.1 billion –the highest disbursement by any lender. The World Bank’s role had remained commendable, as it is the only international creditor that swiftly planned and approved flood-related schemes being implemented in Balochistan and Sindh –the two worst affected provinces. The WB’s country office has also built a transparent mechanism to track the development in the housing sector in Sindh where the lender has given funds for the reconstruction of the homes. The Saudi Development Fund had pledged $1 billion in loan, which it has given in the shape of oil financing and is part of the $2.8 billion disbursements. The Paris Club and the European Union have also released $65 million against the Geneva pledges, mostly in the shape of the grants. The United States also released $61 million in grants. Pakistan’s foreign inflows have been slowing down due to weak economic conditions despite the availability of the International Monetary Fund umbrella. For the next fiscal year, the government is aiming at receiving a total $6.1 billion in bilateral and multilateral lending but its numbers are not crossing $5.4 billion so far. Read: WHO raises alarm over 'second disaster' in flood-hit Pakistan The Economic Affairs Ministry said that the representatives from bilateral and multilateral development partners, including ambassadors from Azerbaijan, Sweden, Kazakhstan, Norway, Australia, and diplomats from Germany, China, the UAE, South Korea, the US, Qatar, Turkey, Netherlands, Russia, Japan, France, Switzerland, as well as officials from the Canadian and British high commissions, participated in the Support Group meeting. Representatives from various international organisations such as the UNDP, the World Bank, the ADB, the IMF, the AIIB, the UNRC, the EU, KfW, UNICEF, IsDB, WFP, AICS, and USAID were also present.
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