Flood damage

In a major step forward, a joint consortium of multilateral donors has verified the Post-disaster Needs Assessment for post-flood Pakistan by reconciling a figure of total damages and economic losses to slightly over $31 billion. Now we have a clear figure of the losses that the recent floods caused. This estimate is not much off the mark from the initial estimates that some sources had calculated. That the consortium included in its fold nearly all major donors from the Asian Development Bank and European Union to the UNDP and World Bank makes the estimate a reliable one. Now, the international community must also revise and upgrade its lower-than-expected response to finance the rehabilitation efforts in Pakistan. The stamp of approval by this many multilateral agencies and banks should serve as conclusive evidence that Pakistan needs at least $16 billion for reconstruction costs. Most of all, it is up to the G-20 countries that have the most industrialized and rich economies in the world to come up with a generous amount to help Pakistan.

And this should not be a handout; this should be given to Pakistan as a cost of climate justice that rich countries must offer to countries in the Global South. Pakistan has contributed less than one per cent to carbon emissions that are a major cause for floods. It has been no secret that the rich world produces more than 80 per cent emissions. Now is the time to compensate for this blatant degradation of the environment that wreaks havoc in other countries. A lot of hopes are pinned on the upcoming conference of donors that is likely to take place in New York or Paris by the end of this year. The world community can somewhat ease this climate injustice by showing a clear commitment to helping Pakistan rebuild itself. Apart from donor commitments, the IMF too must acknowledge the dire state Pakistan is in and relax some of the tough conditions it imposes on its borrowers in normal conditions. Pakistan is not in a normal state now and can hardly fulfill the expectations of the IMF.

The severe floods during this year's monsoon season have greatly diminished Pakistan’s capacity to revive its economy with a respite from the IMF. The IMF barred Pakistan from utilizing 40 per cent of its PDSP funds till the last quarter of the current fiscal that will end in June 2023. It is in all fitness of things that the IMF reconsider its conditions and withdraw some of the harshest ones such as this. Climate-induced disasters have compounded Pakistan’s economic woes and GDP growth is likely to be greatly affected. Estimates show that eight to nine million people have descended into extreme poverty and a similar number will follow if immediate relief does not come from the world community. From food security to disease outbreaks, there are multiple challenges the country has to tackle whereas millions of children and women are also at the mercy of the elements. Livelihood opportunities have also declined massively. All this calls for a sympathetic consideration for Pakistan in the upcoming COP27 meeting too. On Pakistan’s part, it must do careful preparations for both the donors’ conference and for COP27.