ISLAMABAD: As the cost of the flood protection plan rises by nearly 51% even without its launch, Pakistan is expecting around $13 billion from international donor agencies and lending partners to finance nearly 80% of the framework. Resilient Recovery and Reconstruction (3RF) over the next three years.
This is part of the estimated funding plan being finalized by the federal government in consultation with relevant ministries, agencies and provincial governments, in line with post-disaster needs assessed by international aid and UN agencies. About $10 billion in funds are needed, of which $7.9 billion would be spent in Sindh and $2.2 billion in Balochistan.
The government has calculated an overall financing requirement of approximately $40 billion over 10 years. This should be organized for the long term through a combination of international financing, redirection of allocations made for the existing public sector development program (PSDP) and public-private partnership.
The financing plan estimates around 3.6 trillion rupees (16.16 billion dollars), expecting 13 billion dollars (2.9 billion rupees) from international development partners and around 730 billion rupees from local resources. .
Flood Protection Plan cost increases by 51pc
Of the local resources, about 360 billion rupees each had to be arranged by federal and provincial governments and non-governmental organizations, etc.
The key premise of the plan is funding for climate justice after the global community, following the COP27 climate summit in Egypt, announced that a fund would be established to help countries address the damage caused by climate change.
Based on these financing requirements and arrangements, a financing plan would also be shared with the International Monetary Fund (IMF) in a few days to facilitate policy-level discussions on the ninth review of its ongoing program which has been delayed for weeks.
The IMF was seeking quarterly estimates of funds for the current fiscal year for flood rehabilitation.
Ministry of Water sources told Dawn that a key segment of the 3RF program was the 10-year National Flood Protection Plan which was approved by the Council for Common Interests (CCI) in 2017 with a cost. estimated at 332 billion rupees in two phases – including 177 billion rupees. in an initial phase of five years.
The estimated cost of the plan is now believed to have exceeded Rs 500 billion to cover structural measures such as increased flood passage capacity, watershed management and reservoir construction, in addition to a system improved flood warning and institutional reforms.
The main objectives of the medium-term framework (the first three years) are the restoration of jobs and livelihoods, the recovery and reconstruction of critical assets, services and infrastructure, and the strengthening of governance and the capacities of stakeholders to reconstruction.
The overall estimate for rehabilitation was set at $18 billion, including $2.76 billion for social infrastructure, $1.1 billion for health and education, $800 million for physical infrastructure , 5 billion dollars for the transport and infrastructure sector and about 4 billion dollars for agricultural and livestock areas. In addition, approximately $1.6 billion is targeted for social protection and livelihoods.
The Post-Disaster Needs Assessment (PDNA) – conducted jointly by the World Bank, Asian Development Bank, United Nations Development Program and European Union with support from the Pakistani government – recently estimated the damage and the losses caused by the floods at more than 30 billion dollars (around Rs6.5tr).
These major international agencies have already warned of a substantial increase in poverty levels, widening fiscal and external deficits amid political and economic instability.
Based on these estimates, Pakistan had called for easing IMF conditions and demanded “climate justice” to invest in climate rehabilitation and adaptation efforts. The Fund has now requested the authorities to make such allocations as part of the current year’s budget to ensure the macroeconomic policy objectives set out under its $7 billion program.
The PDNA report laid bare the inadequacy of Pakistani institutions and systems related to urban planning, water management, infrastructure maintenance, governance structures and capacity for management and mitigation. risks and noted that the devastating “once in 1,000 years” flood had further exposed these weaknesses.
At a recent meeting, the National Assembly’s Standing Committee on Finance revealed that federal and provincial disaster management agencies had operated in a vacuum of data on the real needs of those affected and the provision of relief and support for rehabilitation, although almost four months have passed since the devastating event.
Posted in Dawn, November 25, 2022
. government expects billion dollars foreign aid against the floods on three years