Photo courtesy PID
Pakistan on Monday raised over $10 billion in pledges at a donors’ conference in Geneva co-hosted by Prime Minister Shehbaz Sharif and United Nations Secretary General Antonio Guterres, in excess of the $8 billion it had sought in financial support for the reconstruction and rehabilitation of areas devastated by last year’s unprecedented floods.
The International Conference on Climate Resilient Pakistan was attended by heads of state and government and other stakeholders. In his opening address, the prime minister stressed that Pakistan had estimated $16 billion in damages, adding that it needed $8 billion of this from international partners to rebuild the country, while it would arrange the remainder itself. Recalling the “monsoon on steroids” that had struck Pakistan last year, Sharif said it had impacted 30 million people; displaced over 8 million; and destroyed over 8,000km of road linkages.
“We are racing against time,” he warned. “We are thankful for the support extended to us by the Asian Development Bank, U.N., International Monetary Fund (IMF) and several other international organizations,’ he said, adding that the state had also “responded courageously” to the disaster, saving thousands of lives and quickly restoring disrupted communications. However, he lamented, the country’s dearth of resources required “tough choices” that the government was aware would make lives harder for the common man.
Detailing the government’s plan for recovery, rehabilitation, reconstruction and resilience—4RF—he said: “The first part of the plan reflects the recovery and reconstruction, bearing in mind that a minimum funding of $16.3 billion is required, half of which will be met with domestic resources, half from foreign resources.” The second part, he continued, would aim to incorporate flood-resilient design and infrastructure, which would entail $8 billion over the next three years.
“I am asking for your support for those who have lost their life savings, homes, and livelihoods and are facing the harsh winter under open skies. I am asking for a sustained international support plan to meet this daunting challenge, for a new lifeline for these people. Together we have to rebuild their lives and their dreams,” he added. He also assured donors that all pledged funds would be spent transparently. “I’ve put in place a third-party mechanism so that every penny is accounted for,” he vowed.
Guterres took the podium after the prime minister and urged the global community to provide “massive investments” to help Pakistan. “No country deserves to endure what happened to Pakistan,” he said, stressing that while rebuilding would require $16 billion, “far more” would be needed in the long-term. Lamenting that the people of Pakistan had been “doubly victimized” by climate disasters and “morally bankrupt” global financial systems, he regretted that the “system” denied debt relief to middle-income countries to allow them to invest in climate-resilience.
Reiterating a need for “creative” ways for developing countries to access debt relief and concessional financing, he added: “We need to be honest about the brutal injustice suffered by developing countries due to climate change. If there is any doubt about loss and damage, go to Pakistan. The devastation of climate change is real.”
Funding for Pakistan
Various multilateral and bilateral donors pledged the following amounts to Pakistan at the conference:
- Islamic Development Bank $4.2 billion
- World Bank $2 billion
- Asian Development Bank $1.5 billion
- Asian Infrastructure Investment Bank $1 billion
- Saudi Arabia $1 billion
- European Union €500 million
- France $380 million
- China $100 million
- United States $100 million
- Germany €84 million
- Japan $77 million
- United Kingdom £9 million
- Azerbaijan $2 million
- Canada $18.6 million
- Denmark $3.8 million
- Italy €23 million
- Netherlands €3.5 million
- Norway $6.5 million
- Qatar $25 million
- Sweden $7.5 million
Global solidarity
The pledges are to be disbursed over three years, with a statement issued after the conference noting that donors had reiterated their support to Pakistan for a resilient recovery, rehabilitation and reconstruction. It said all visiting delegations had expressed their solidarity and announced commitments of financial support to the realization of the objectives and priority areas outlined in the recovery plan, as well as ongoing humanitarian efforts. “Taken as a whole these commitments totaled more than $9bn, from both bilateral and multilateral partners. Further announcements for in-kind support were made by several delegations,” it added.
“Today has truly been a day which gives us great hope,” Minister of State for Foreign Affairs Hina Rabbani Khar said in a speech closing out the conference. “The message from the world is clear: the world will stand by those who go through any natural calamities, and will not leave them alone,” she added.
Earlier, in his address at the climate conference, Foreign Minister Bilawal Bhutto-Zardari noted that Pakistan would need considerable support over the next several years to implement a comprehensive plan for flood recovery. “At least half of the framework plan will be implemented from our resources,” he stressed, adding that the government would turn this challenge into an opportunity to build a more resilient Pakistan and an economy which is dynamic and sustainable.
“We are determined to do it in an open, transparent, and collaborative way. The rationale for this conference is to express international solidarity with Pakistan as it begins its journey towards building back better,” he said, and expressed gratitude to the U.N. for convening the conference. “We remain steadfast in responding to the emergency needs of the affected population and the reconstruction of affected infrastructure.”