Pakistan got $1.25bn for flood-hit areas by June

ISLAMABAD: Out of $4.6 billion pledges made by donors to finance reconstruction in flood-affected areas, the total amount realised till the end of June 2024 stands at $1.25 billion.

The World Bank has so far loaned $1.184 billion becoming the largest development partner in the flood-affected areas. Now the official projection stands at $500 million for flood-affected areas in 2024-25 out of which the disbursement for the first quarter will be estimated at $100 million.

Federal Minister for Planning, Development & Special Initiatives, Ahsan Iqbal, chaired the 4th meeting of the Policy and Strategy Committee (PSC) and the Oversight Board on Post-Flood Reconstruction Activities.

The agenda of the meeting included a review and follow-up on decisions made during the 3rd PSC meeting, a progress review of ongoing 4RF projects, updates on flood reconstruction and coordination efforts with UNDP, and the current status of financial pledges.

In his opening remarks, Minister Ahsan Iqbal noted that one-third of the country was submerged during the unprecedented rains that struck Pakistan between June and August 2022, affecting 33 million people and displacing nearly 8 million.

The floods claimed over 1,700 lives, with one-third of the victims being children. More than half of the districts in Sindh, Balochistan, and KP were declared disaster-stricken.

The 2022 floods also underscored Pakistan’s extreme vulnerability to climate change, despite the country contributing less than 1% of global greenhouse gas emissions in 2018, and consistently ranking among the top 10 countries most affected by climate change.

In response to the 2022 floods, the Ministry of Planning developed the Government of Pakistan’s strategic policy, known as the Resilient, Rehabilitation, and Reconstruction Framework (4RF). This framework is designed to guide the country’s recovery, rehabilitation, and reconstruction efforts.

The 4RF outlines four key objectives: enhancing governance and institutional capacity to restore lives and livelihoods, reviving economic opportunities, ensuring social inclusion and participation, and restoring and improving basic services and physical infrastructure in a resilient and sustainable manner.

Ahsan said the 2022 floods resulted in a total loss of $30 billion for Pakistan. While the estimated need for recovery was $16.2 billion, “pledges made” so far amount to $10.9 billion, leaving a shortfall of $17.1 billion.

The Post-Disaster Needs Assessment (PDNA) estimated that the total damages exceeded $14.9 billion, with economic losses reaching $15.2 billion. The assessment also projected a significant increase in food insecurity, with the number of affected people expected to rise from 7 million to 14.6 million. Additionally, over 2 million housing units were damaged, including 780,000 that were completely destroyed and more than 1.2 million that suffered partial damage.

The planning minister emphasized the importance of the collaboration between Pakistan and its development partners following the catastrophic 2022 floods. He noted that a number of initiatives were launched in response to the disaster, with significant commitments made by international partners.

The minister highlighted the need for swift and efficient implementation of projects to rebuild affected communities and restore livelihoods. Reflecting on the challenges, he highlighted a paradox in the approach taken by development partners regarding resilience and adaptation.

“Initially, we were encouraged to focus on long-term adaptation and resilience. However, as the Geneva Conference drew near, the partners recommended shifting to short-term projects due to the high costs of adaptation. Despite this, the 4RF document fully incorporates adaptation and resilience components, ensuring we are prepared for future challenges,” he explained.

The minister also underscored the urgency of addressing climate change impacts, pointing out severe weather changes and notable losses in agricultural output, particularly in cotton crops this year.