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Pakistan So Far Received 4 bln $ Flood Aid

ISLAMABAD: The Senate Standing Committee on Planning and Development was informed on Thursday that Pakistan had so far received financial foreign assistance worth over $4 billion to support flood relief activities in the country.

Officials from Economic Affairs Division informed the committee that out of the total financial assistance, the international development partners had extended an amount of $3.64 billion in the form of loans and $435.03 million in the form of grants.

The meeting was informed that the development partners and the countries had dispatched in kind assistance for the flood victims.

The meeting of the committee was presided over by Senator Attaur Rehman and was attended by senators Dost Muhammad Khan, Ejaz Ahmed Chaudhry, Saadia Abbasi, Hidayat Ullah, Tahir Bazinjo and Nuzhat Sadiq.

The meeting was informed that out of the total loan amount, the World Bank had extended $1.78 billion loan while the Asian Development Bank (ADB) provided loan worth $559 million.

Similarly, the Asian Infrastructure Investment Bank also extended $500 million loan.

It was highlighted in the meeting that out of the total grant, ADB extended grant of $8.28 million while Islamic Development Bank (IsDB) provided grant of $700,000.

The meeting was informed that the United Nations in coordination with government of Pakistan launched a $160.3 million flash appeal on August 30, 2022  for flood of which $148 million has been pledged by the humanitarian commitments as of September 15, 2022.

The revised appeal, however urgently seeks $816 million to respond to the growing lifesaving needs of the people-a jump of $656 million from the initial applea of $160 million.

UN’s organizations WHO, UNFPA and FAO provided financial support of $3.06 million whereas China also provided $112.33 million for the rehabilitation and reconstruction process in flood hit areas.

While Pakistan’s central bank reported on Friday that the Kingdom of Saudi Arabia (KSA) had extended the term of the $3 billion deposit in the State Bank of Pakistan (SBP), shoring up the country’s foreign exchange reserves and strengthening the domestic economy.

The rollover of the deposits has helped the Pakistani rupee as it closed unchanged at Rs 223.69 against the US dollar on a day-to-day basis in the interbank market on Friday.

The news was later confirmed by SBP which termed the extension provided by the Saudi Fund for Development (SFD) “a continuation of support provided by KSA”.

“The deposit aimed to shore up the foreign currency reserves in SBP and help Pakistan in facing the economic repercussions of the Covid-19 pandemic,” the statement added.

“It, furthermore, contributed to meeting external sector challenges and achieving sustainable economic growth for the country,” it continued.

“It is worth noting that the $3 billion deposit agreement was signed through the SFD with the SBP in November 2021, after the issuance of the royal directives that reflect the continuation of the close relationship between the two countries,” the central bank said.