Thursday, January 19, 2023

Aid to Pakistan Questioned

 Seven months since the rains began, thousands continue to live in open areas, tents, and makeshift homes in Sindh and Balochistan, the two worst-hit provinces stalked by a cold spell, disease and food shortages making life even more perilous. According to the UN, an estimated 5 million people remain exposed to or living close to flooded areas. A post-disaster needs assessment (PDNA) has estimated the damage exceeded 30 bn USD—a tenth of Pakistan’s entire GDP.

 recent international donors’ conference held in Geneva was deemed a “success” after Pakistan was able to secure $10 billion. Prime Minister Shehbaz Sharif has promised “every penny” of the pledges will be used towards rehabilitation of flood-hit people.

Janib Gul Mohammad, a farmer from Fateh Ali Buledi village in Kamber Shahdadkot, one of the worst affected districts in Sindh province, doubted he would even “get a rupee out of the billions of dollars” received on his behalf.

“Our rulers are clueless about how hungry our kids are,” said Mohammad, whose family has had to ration and reduce their consumption of roti (flat bread) from “two to three to just one at every meal”.  He and his family of 13 are among the more than 33 million Pakistanis affected by last year’s unprecedented floods.

Reminding that pledges were not commitments, Kashmala Kakakhel, a climate finance expert, said she would like to get a clear distinction between the new money and one that is rebottled to address the impact of floods but doubted the government will “ever tell”.

 Michael Kugelman, director of the Wilson Centre’s South Asia Institute, found the self-congratulatory messaging purely “political” of a government, which he said, was “weak, unpopular and struggling to rein in a cascading economic crisis”. Kugelman said by “only offering pledges, not actual aid, they have given themselves a safety net and a possible way out in case they decide they are not ready to commit to such large figures.” Of the $10bn pledges, $8.7 billion are loans that the government has “conveniently underplayed”, said Wilson Centre’s expert. And these may take several years to arrive.

Ashafque Soomro, heading the Research and Development Foundation, a Sindh-based nongovernmental organization which had been at the forefront of assisting flood-affected communities, is not sure if getting more loans is a good idea at all. In this critical time of economic crunch, he said, the government should have “built a strong case for climate justice” to get grants instead. “I am very concerned that the government is not only forcing us further into a debt trap but risks defaulting on repayment.” 

According to the former finance minister Miftah Ismail, Pakistan owes the world nearly 100 billion USD and has to repay $21bn to lenders during the current fiscal year. “We have no resources to repay our lenders. We will just have to try to borrow from one creditor to pay off another.” 

Kakakhel asked, “Why have an emergency donor conference at all if you are treading the same old traditional path of seeking loans?” 

 Ali Tauqeer Sheikh, a climate expert, was not sure if Pakistan would be able to put all of it to use, given its “track record on delayed implementation of development projects”. Pakistan, he pointed out, was littered with “more than 1,200 unfinished projects worth Rs1.6 trillion ($6.67 billion”.

Pakistan’s 10 Billion Dollar Flood Funding Question | Inter Press Service (ipsnews.net)


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