In a major relief, international donors committed to giving Pakistan over $10 billion to help it recover from last year’s devastating floods. The pledges were announced at an international conference on January 9, 2023, in Geneva, Switzerland.
Officials from some 40 countries, private donors, and international financial institutions gathered for the meeting in Geneva. Islamabad sought help covering around half of a total recovery bill of $16.3 billion over the next three years.
Pakistan’s government said it had prepared a comprehensive framework for recovery, rehabilitation, and reconstruction with resilience. “The first part of this plan reflects priorities for recovery and reconstruction, bearing in mind the minimum funding requirement of $16.3 billion, half of which is proposed to be met from domestic resources and the other half from development partners and friends,” Prime Minister Shehbaz Sharif said.
Prime Minister Shehbaz Sharif co-hosted the International Conference on Climate Resilient Pakistan in Geneva along with United Nations Secretary-General Antonio Guterres.
Donations pledged at Geneva conference
The Islamic Development Bank made the highest commitment, pledging $4.2 billion, followed by World Bank ($2 billion) and Asian Development Bank ($1.5 billion), according to Information Minister Marriyum Aurangzeb.
- 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
- USAID — $100 million
- Germany — €84 million
- Italy — €23 million
- UK — £9 million
- Japan — $77 million
- Canada — $25 million
- Azerbaijan — $2 million
- Denmark — $3.8 million
- Netherlands — €3.5 million
- Norway — $6.5 million
- Qatar — $25 million
- Sweden — $7.5 million
Asian Development Bank Vice President Shixin Chen also announced that the ADB would reprioritize up to $1 billion for climate and disaster risk reconstruction as well as resilience support over the next three years.
Keep spending within sustainable limits – WB
The World Bank, while promising $2 billion to the flood recovery efforts, emphasized the need for Pakistan to “keep spending within sustainable limits”.
“A truly resilient recovery will not be possible without additional fiscal and structural reforms,” said the World Bank’s vice president for the South Asia region, Martin Raiser.
Raiser also urged Pakistan to address the inefficiencies that are muting investment and adopt a more progressive, wider-based taxation system.
France commits additional emergency aid
Announcing a $380 million (360 million euros) support via video-link, French President Emmanuel Macron said Paris would also provide an additional 10m euros in emergency aid. He further said that France was ready to help Pakistan in its negotiations with financial institutions, as the country struggles to meet the losses from recent floods.
US commit additional $100 million
“I am delighted to announce that the United States is making an additional $100m commitment to Pakistan to help it recover from the devastating 2022 monster monsoon floods,” USAID Deputy Administrator Isobel Coleman told reporters on the sidelines of the Geneva conference.
