$10.7b pledged donations for flood victims to not avoid default risk

Pakistan has secured $10.7 billion in pledges from across the globe during International Conference on Climate Resilience in Geneva yesterday, however, it will not help the country to avoid the default risk.

The major pledges made at the conference, co-chaired by Pakistan and the United Nations in Geneva, Switzerland, included $ 4.2 billion from the Islamic Development Bank (IsDB), $ 2 billion from the World Bank, $ 1.5 billion from the Asian Development Bank (ADB), $ 1 billion from the Asian Infrastructure Investment Bank (AIIB) and $ 1 billion from Saudi Arabia.

The government ministers were seen taking credit of getting the world’s attention towards the flood affected areas of the country and termed it their achievement for the people of Pakistan. Economists said that it will not change the economic scenario of Pakistan nor it will end the default risk.

They said that the pledged donations will be given to the country in the next 10 years under a strict monitoring system for its spendings only for the flood affectees.

According to the state news agency, Pakistan on Monday secured over $ 10 billion pledges from the international financial institutions, donor agencies and development partners for the rehabilitation, recovery and reconstruction of flood affected areas.

The conference provided an opportunity to present the 4RF, secure international support, and forge long-term partnerships for building Pakistan’s climate resilience and adaptation.

Minister of State for Foreign Affairs Hina Rabbani Khar said, “Based on the PDNA, the Core Group has supported the Government of Pakistan in developing a Resilient Recovery, Rehabilitation and Reconstruction Framework (4RF). The 4RF provides an overarching framework for planning, financing, implementing and monitoring Pakistan’s resilient recovery, rehabilitation and reconstruction efforts.”