The Geneva Conference remained successful more than Pakistan expected as International donors have committed over $9 billion to help Pakistan recover from ruinous floods last year, exceeding its external financing goals and paving the way for a new model for raising funds to fight climate disasters in poorer countries. The successful moot will help cash-strapped Pakistan in boosting its foreign reserves.
The meeting’s co-hosts, the United Nations and Pakistan’s government, said more than $9 billion had been pledged from bilateral and multilateral partners.
Among the donors were the Islamic Development Bank ($4.2 billion), the World Bank ($2 billion), Saudi Arabia ($1 billion), as well as the European Union and China. France and the United States also made contributions.
It amounts to more than half of the estimated $16.3bn Pakistan needs to recover from the disaster. PM Shehbaz Sharif, Foreign Minister, Bilawal Bhutto Zardari, Sherry Rehman, Marriyum Aurangzeb and others have also thanked the world community for extending generious support for Pakistan’s flood recovery.
In his tweets on Tuesday, PM Shehbaz Sharif said the UN Secretary-General has shown stellar leadership all along. The People of Pakistan will forever remain grateful to him.
The Prime Minister said the world witnessed yesterday how the nations can come together in a show of solidarity to create a model of win-win partnership to lift suffering humanity out of tragedy.
Last year’s floods killed at least 1,700 people, displaced eight million more and destroyed infrastructure. The pledges come as Pakistan continues negotiations over the next installment of an international bailout.
Meanwhile, the IMF’s ninth review of the Extended Fund Facility (EFF) has been pending since September. On January 6th, the PM stated that the IMF team is set to travel to Pakistan to finalise the review and release the $1.18 bn pending. A delegation is also reported to meet the Finance Minister on the sidelines of the Geneva moot to discuss the terms and conditions of the facility.
The release of IMF funds has become dire as well, given the fact that our SBP foreign exchange reserves are depleted to an eight-year low of only $5.576 billion. While the FM expresses hope about reverting this situation with financial help from friendly countries, if the review is not settled and funds are not released, the country will face a serious case of default.
Islamabad is hoping to get the matters with the international lender on track in Geneva. The moot has surely brought good results for Pakistan as Islamabad went to Geneva with the hope to get cash support on account of climate change. The pledge of world for support surely a good omen for the country’s drowning economy.
