Tag: Assistance

  • S&P Global lowers Pakistan’s credit rating to CCC+

    S&P Global lowers Pakistan’s credit rating to CCC+

    Pakistan’s long-term sovereign credit rating was downgraded by S&P Global from “B” to “CCC+” to reflect the continuous deterioration of the country’s external, fiscal, and economic metrics.

    According to S&P, Pakistan’s already meagre foreign exchange reserves would continue to be under pressure through 2023 without a drop in oil prices or an improvement in international aid. The nation also faces significant political risks that could alter its future course of policies.

    According to the report, Pakistan’s economic and fiscal results are predicted to be negatively impacted by this year’s devastating floods, skyrocketing food and energy prices, and rising global interest rates, with refinancing issues over the medium term.

    The agency maintained its outlook at “stable”.

    With barely enough reserves to pay one month’s worth of imports, a dollar shortage, and a delay in its loan programme with the International Monetary Fund, Pakistan is in the midst of an economic catastrophe. Despite the payment of a $1 billion bond this month, long-term dollar bonds continue to trade at distressed prices, reflecting investors’ lack of confidence in Pakistan’s capacity to meet its international debt commitments.

    Following the terrible floods that hit the country earlier this year, Moody’s lowered Pakistan’s sovereign credit rating by one notch, from B3 to Caa1, citing heightened government liquidity and external vulnerability risks.

  • World Bank approves $1.69 billion financing for flood-hit Sindh

    World Bank approves $1.69 billion financing for flood-hit Sindh

    The Board of Executive Directors of the World Bank approved funding for five projects totaling $1.692 billion on Tuesday in order to support those residing in Sindh, Pakistan’s flood-affected areas.

    According to Geo, out of the five initiatives, three support rehabilitation, home reconstruction, and the restoration of crop production for vulnerable populations, according to a statement released by the World Bank. Two of the three projects have a combined value of $500 million, while the third is worth $292 million.

    “Sindh was the province worst affected by the 2022 floods. There were huge damages to the housing, health, and agriculture sectors and people lost their livelihoods. Beyond the rehabilitation and reconstruction of damaged houses and infrastructure, our engagement in the flood response effort is an opportunity to strengthen resilience, and reform institutions and governance structures”, said Najy Benhassine, World Bank Country Director for Pakistan.

    The “Sindh Flood Emergency Rehabilitation Project,” which will cost $500 million, will prioritize creating short-term livelihood opportunities and enhancing the province’s ability to respond to emergencies.

    “The project will help restore and improve critical irrigation and flood protection infrastructure, water supply schemes, roads, and related infrastructure. At least 2 million people—approximately 50 per cent of whom are women—in the most flood-affected districts will benefit from the restoration and the resilient reconstruction of critical infrastructure”.

    About 100,000 households will get short-term financial support through a community-level cash-for-work program.

    “The $500 million Sindh Floods Emergency Housing Reconstruction Project will support owner-driven and multi-hazard resilient reconstruction of core housing units. A housing subsidy will provide reconstruction and restoration grants for 350,000 housing units (almost 20 per cent of the total housing rehabilitation needs for Sindh). Cash grants will be provided for houses with structural damage to partially finance reconstruction or restoration. “

    To increase access to water and sanitation, twin pit latrines and simple rainwater collection systems will also be provided.

    Furthermore, the $292 million approved for the “Sindh Water and Agriculture Transformation Project” will enhance integrated water resource management, boost agricultural water productivity, and enable farmers who were impacted by the flood to resume crop production.

    “More than 385,000 households (approximately 1.9 million people) are expected to benefit from the project. As an immediate response to the floods, the project will provide cash transfers to approximately 300,000 flood-affected farming households to help restore crop production through the purchase of seeds, fertilizer, and other critical inputs. In the medium term around 70,000 households will benefit from improved irrigation services and agricultural support that will help boost farming income. An estimated 14,000 households will receive direct financial benefits from the pilot smart subsidy schemes targeting small- and medium-sized farmers,” the WB said.

    By improving access to and use of mother and child health services, the Sindh Strengthening Social Protection Delivery System Project ($200 million) will also boost the province’s social protection delivery system. As part of the project, the Federal National Database Registration Authority will be aligned and connected, and conditional cash transfers (CCTs) will be given to 1.3 million mothers and their kids to support better maternal and child health outcomes, particularly in the wake of service disruption caused by the floods.

    The CCTs will be made available to Sindh’s bottom 15 districts, selected depending on the Multidimensional Poverty Index (MPI), and will cover 65 per cent of the province’s total flood-affected areas. They are intended to help lessen the effects of the floods, particularly food insecurity, and to maintain access to maternal and child health services open.

    The Sindh Integrated Health and Population Project have been granted $200 million by the lender. The project will assist in raising the standard and uptake of fundamental nutrition, and maternal, neonatal, child, and adolescent health care. Additionally, it will aid in the repair and reconstruction of health infrastructure that was harmed during the floods and impeded the provision of these services.

    The initiative would enhance the population’s access to high-quality healthcare services in Sindh’s flood-affected settlements as well as in distant and peri-urban areas, particularly for women, girls, and children.

    “The World Bank will continue to support the Government and people of Pakistan to recover from the recent flood emergency and strengthen long-term resilience to such climate-related shocks,” the statement concluded.

  • Pakistan to receive $13 billion in financial assistance from China and Saudi Arabia

    Pakistan to receive $13 billion in financial assistance from China and Saudi Arabia

    Ishaq Dar, Federal Minister of Finance, has said that Pakistan’s two closest friends, China and Saudi Arabia, will contribute a multibillion-dollar financial package to assist Pakistan with its shaky economy.

    According to the Finance Minister, both countries will grant Pakistan a $13 billion package.

    According to The News, Dar went on to say that China intends to contribute $8.8 billion in assistance, including loan rollovers, during the current fiscal year, and that it will also roll over $4 billion in deposit returns.

    In addition, Ishaq Dar indicated that it will provide $3.3 billion in commercial loans and $1.45 billion in additional financing.

    Meanwhile, Saudi Arabia is expected to contribute an extra $4.2 billion in aid, including $3 billion in new reserves and a delayed payment oil facility, according to the Finance Minister. He declared that the Kingdom would construct a petrochemical facility in Gwadar.

    Furthermore, the Minister stated that both countries have guaranteed Pakistan’s Prime Minister (PM), Shehbaz Sharif, of their support and will continue to do so till June 2023.

    Furthermore, China has promised that construction on CPEC’s key railway projects, Main Line 1 (ML-1) and Karachi Circular Railway (KCR), will begin shortly.

  • IMF to help Pakistan after World Bank and UNDP assess flood damages

    IMF to help Pakistan after World Bank and UNDP assess flood damages

    The International Monetary Fund stated that it is awaiting the assessment reports from the World Bank and UNDP as well as the economic destruction brought on by the country’s severe flooding before determining how it might assist Pakistan.

    According to Geo, the international lender announced that as part of the preparations for the upcoming review, it will also dispatch a delegation the following month after the annual meetings.

    But the IMF made it clear that it would hold off until the UNDP and World Bank completed their assessments of the damages.

    At a news conference in Washington on Thursday, Jihad Azour, the IMF’s Director of the Middle East and Central Asia Department, stated that “We were saddened by the loss of human as well as livelihood in Pakistan with the flood, and we present, and we reiterate our condolences to the people of Pakistan. The Fund has been very supportive of Pakistan over the last few years. We have a programme with Pakistan that has been extended and increased in size.

    According to Azour, the Fund took these actions to provide Pakistan more flexibility during the Covid-19 crisis in order to help the government deal with the confluence of shocks.

    When talking about subsidies, the director remarked “Targeted subsidies that promote certain products have not been found to be highly beneficial. It has shown to be extremely regressive, “added he.

    Azour said that the Fund urges Pakistan and other nations to stop giving out ineffective subsidies that waste money. He further emphasised that the IMF supports nations in allocating these resources to those who are in most need.

  • ADB to provide up to $2.5 billion under flood relief support to Pakistan

    ADB to provide up to $2.5 billion under flood relief support to Pakistan

    The Asian Development Bank (ADB) announced on Wednesday that it would provide support of $2.3–2.5 billion for relief efforts in the wake of disastrous floods that have left Pakistan severely damaged.

    The declaration was made during a meeting between Pakistan’s ADB Country Director Yong Ye and Finance Minister Ishaq Dar, as per a press release from the Finance Division.

    Ye offered his condolences for the loss of life and property as a result of the floods during the meeting and congratulated Dar on taking office.

    According to Dawn, the Balochistan Rural Development and Community Empowerment Programme would receive $1.5 billion of the promised aid, according to the ADB country director, and the request will be presented to the bank’s board this month.

    According to a press release, it was discussed that the Country Partnership Strategy for Pakistan 2021–25 is in accordance with the government of Pakistan’s vision.

    The finance minister was quoted as saying that he welcomed the delegation and valued ADB’s assistance in advancing sustainable development in the nation. Dar also informed the delegation of the flood’s damages and financial consequences.

    The administration had stopped the economy’s slide and put it on the correct course with its “pragmatic policy initiatives,” he continued while acknowledging that the economy still faced enormous obstacles.

    The finance minister also gave the ADB team an overview of the government’s priorities.

    Dar hailed the ADB delegation for their steadfast support and assured them of full government cooperation for the expeditious implementation of the current and new programmes.

  • Punjab CM Pervaiz Elahi increases financial assistance for flood victims to Rs10 lac

    Punjab CM Pervaiz Elahi increases financial assistance for flood victims to Rs10 lac

    Chief Minister (CM) Punjab, Chaudhry Pervaiz Elahi, has increased financial assistance for families of deceased victims from Rs. 0.8 million to 1 million (Rs 8lac to Rs10 lac).

    CM Elahi had a meeting with Provincial Minister Muhammad Muneeb Sultan Cheema in which they discussed the current political situation of the country and relief activities for flood affectees.

    Elahi was of the view that Pakistan has been greatly affected by climate change, with massive destruction caused by unusual rains and floods. For this purpose, the government has to take extraordinary measures, reports Geo Urdu.

    Commissioner Dera Ghazi Khan (DG Khan) said that Rs75,000 will be given for the loss of large animals due to floods.

    The aid for those who lost their cemented houses has been increased from Rs. 100,000 to Rs. 400,000. Similarly, the aid for those who lost their mud houses has been increased to Rs. 200,000 from Rs. 40,000.

    On Friday, Foreign Minister (FM) Bilawal Bhutto-Zardari presented a cheque of Rs15 million to PM Shehbaz as a contribution from the Ministry of Foreign Affairs towards the PM’s Flood Relief Fund.

    Last week, Prime Minister (PM) Shehbaz Sharif announced that PM Flood Relief Fund will be audited by the Accountant General Pakistan Revenues (AGPR) and a private audit firm to ensure transparency.

    Devastating floods in Pakistan have wreaked havoc across the country, leaving a path of destruction and loss in their wake. More than 1,400 people have lost their lives, one-third of whom are children.

    Record monsoon rains and melting glaciers triggered the disaster. The United Nations (UN) and Pakistan have linked the extreme weather to climate change; some 600,000 people have fled their homes.

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  • Flood-related losses may exceed $10 billion: Ahsan Iqbal

    Flood-related losses may exceed $10 billion: Ahsan Iqbal

    Planning Minister Ahsan Iqbal said that the initial economic losses caused by the floods in Pakistan cost at least $10 billion.

    The estimated cost was disclosed by Planning Minister on Monday, saying that Pakistan needed help from the rest of the world to deal with the consequences of climate change.

    Unexpected monsoon rains have caused historic flash floods that have destroyed bridges, crops, infrastructure, and highways, killing over 1,000 people and affecting more than 33 million. “I think it is going to be huge. So far, (a) very early, preliminary estimate is that it is big, it is higher than $10 billion,” Iqbal said.

    The minister estimated that the 200-million-person South Asian country, which will be facing an acute food scarcity, may take five years to reconstruct and recover.

     Along with significant damage to the rice fields, he claimed that 45 per cent of the cotton harvests had been washed away. “I think it is going to be huge. So far, (a) very early, preliminary estimate is that it is big, it is higher than $10 billion,” Iqbal said.

    According to Reuters, the Pakistani military said in a statement on Tuesday that rescue operations were still in progress and that foreign aid, including seven military aircraft from Turkey and three from the United Arab Emirates, was beginning to reach the nation.

    More aid will be sent to Pakistan as a result, which will assist it in overcoming its current condition.

    More than 300 stranded persons had been airlifted away, more than 23 metric tonnes of relief supplies had been provided, and more than 50 medical camps had been set up, with more than 33,000 patients receiving treatment, according to the statement.

    Moreover, China will send two aircraft on Tuesday (today) carrying 3,000 tents and Japan will send tarpaulins and shelters, in addition to the announcements of financial support from the UK, Canada, Australia, and Azerbaijan.

    As the cash-strapped nation struggles with political and economic unrest made worse by the historic floods, the International Monetary Fund (IMF) threw it another lifeline on Monday by releasing $1.17 billion in bailout funding.

    “Pakistan is in dire need and the damages are here and we will be in this a very long time,” Iqbal said. “It’s not months but years we are talking about.”

  • KP govt launches ‘Flood Reporting’ app to aid flood victims

    KP govt launches ‘Flood Reporting’ app to aid flood victims

    To promptly aid those impacted by severe flooding, the Khyber Pakhtunkhwa (KP) government launched the “Flood Reporting” application on Monday.

    Atif Khan, the Minister of Science and Information Technology for Khyber Pakhtunkhwa (KP), gave specific directions for the introduction of the smartphone application.

    The minister stated in a message that flood victims will be able to use the Flood Reporting App to notify when they need food or medicine.

    He promised that the impacted agencies and the Provincial Disaster Management Authority (PDMA) would see to it that the victims of the disaster received immediate aid.

    The latest application has a thorough system for seeking assistance for victims and keeping track of feedback. The smartphone application will allow users to instantly report the type of incidents that occurred and the assistance that is needed.

    Although 1,061 deaths have been reported by authorities since the start of the seasonal rains in June, the eventual death toll may be higher since hundreds of villages in the hilly north have been shut off after roads and bridges were wiped away by floodwaters.

  • Govt announces Rs3 billion subsidy to provide ghee at discounted rate

    Govt announces Rs3 billion subsidy to provide ghee at discounted rate

    The Minister for Information and Broadcasting Marriyum Aurangzeb announced on Monday that the government would provide a Rs3 billion subsidy to lower the price of ghee to assist the masses.

    She told a press conference that the market price of ghee is currently Rs550 per kg, but it is being sold at Rs300 per kg in utility stores across the country, according to AAJ News

    “The government is bearing a cost of Rs250 per kg,” she added, adding that the price of ghee was Rs150 per kg when the Pakistan Muslim League-Nawaz (PML-N) handed over the office to the Pakistan Tehreek-e-Insaf (PTI) in 2018.

    On the other hand, the government has increased the price of ghee and cooking oil at other retailers.

    She further stated that a 10 kg wheat bag could be purchased for Rs400 at any utility store in Pakistan.

    The minister said that on June 6, about one hundred mobile vans were added to the Utility Stores Corporation (USC) network, citing residents of Khyber-Pakhtunkhwa (KP) having difficulty obtaining discounted items due to limited distribution of utility stores.

    9,500 new utility stores

    “In addition, on June 9, 500 new USC stationary stations were set up to deliver wheat, and 100 more items are being added today,” she stated. “Since June 6, the USC network has grown by 700 units”.

    Price control committees have also been established, according to her, to keep hoarding and reselling of USC materials under check. The availability of items at utility retailers, she said, was also being watched.

    The minister stated that Rs17 billion had been set aside to give the public with low-cost sugar, ghee, and wheat.

  • Germany to strengthen trade and investment ties with Pakistan

    Germany to strengthen trade and investment ties with Pakistan

    In a recent meeting with Federal Minister of Commerce and Investment Syed Naveed Qamar, German Minister of State for Foreign Affairs Dr Tobias Lindner expressed his hope that Germany and Pakistan would further strengthen and expand bilateral relations, particularly in trade and investment.

    Both countries discussed multiple aspects of bilateral ties, along a great emphasis on improving trade and financial collaboration to sustain economic growth in a post-Covid pandemic world. The duo agreed to exchange business envoys to look into the prospect of B2B cooperation in renewable power, farming, food security, autos, and technical assistance.

    The Commerce Minister praised Germany for its constant support for Pakistan’s GSP Plus scheme. He emphasized the importance of GSP Plus in widening bilateral trade and offering Pakistan a level playing field in the European segment.

    He also clarified that the scheme has served as a precursor for essential progressive social changes, particularly those relating to women’s empowerment. The German Minister convinced his nation’s continued and forthcoming assistance for the GSP Plus Scheme.