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Geneva flood pledges: Pakistan receives only $1.48bn of $10.9bn

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  • Only $780m disbursed in project financing as of Sep 2023.
  • Govt receives roughly $700m in oil and commodity financing.
  • Saudi Arabia so far disbursed $600 million as an oil facility.

ISLAMABAD: Pakistan has, to date, received only $1.48 billion in funding from both multilateral and bilateral creditors as part of the Geneva pledges totaling $10.9 billion designated for the reconstruction of areas affected by devastating floods last year, The News reported on Wednesday.

The progress of project financing, however, has been alarmingly slow, with just $780 million disbursed as of September 2023. Pakistan endured severe flooding in the previous fiscal year, resulting in extensive human and financial hardships, but there was hope for rehabilitation, as donors committed $10.9 billion in the form of loans to support the reconstruction endeavors.

Islamabad, too, has successfully obtained approximately $700 million in oil and commodity financing. Nevertheless, it is an undeniable fact that the distribution of project loans has remained frustratingly sluggish, necessitating swift action from all federal and provincial agencies responsible for pulling off flood-related projects in their respective regions. Therefore, accelerating these efforts is imperative.

“The caretaker prime minister has also taken notice of this slow disbursement of committed pledges as the project loan acceleration depends upon the executing agencies’ ability to implement the projects on a fast-track basis,” a top official of the government confided to The News here on Tuesday.

The Islamic Development Bank (IsDB) had committed $3.6 billion on account of commodity financing, out of which $1.1 billion was planned to be disbursed on an annual basis over a year. Out of $3.6 billion, there was a planned disbursement of $300 million, which was underway during the current fiscal year.

However, the remaining $3.3 billion was still problematic because it was syndicated financing, which the IsDB planned to secure from other commercial banks. So far, there are indications that its interest rate might exceed and fall into a range of over 10%.

However, the oil-exporting giants argued before the government that if they secured local funding, it would be on the much higher side, keeping in view the higher interest rates in the domestic market.

The Kingdom of Saudi Arabia has so far disbursed $600 million as an oil facility out of total financing committed for commodities and oil financing. The government has heavily relied on the disbursements of project loans from the World Bank and Asian Development Bank. From the World Bank loans, there are projects going to be executed in Sindh and Balochistan for the construction of housing and agriculture sectors.

The premier is expected to chair an important meeting to review progress on donor-funded projects for flood-affected areas after his return from abroad, as one of such important meetings got postponed last week before his recent departure to the USA.

The implementation of flood-affected area projects needs acceleration in order to materialise maximum disbursements from the pledged loans, but without improving bottlenecks at execution levels, this wish will remain just a pipe dream.

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Punjabi bakers decide to charge Rs. 15 for “roti.”

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The bread, known as roti, will be sold for Rs 15 by the bakers association.

During their discussion, the association promised Food Minister Bilal Yasin that the rate of roti will be reduced.

The minister was there when Association President Aftab Gul recorded a video message committing to sell rotis for Rs15 each.

According to him, the administration decided to lower the rate of flour. He continued, saying that the group was supporting the government hand in hand to stop inflation.

The price of flour has been drastically lowered, according to Food Minister Bilal, to help the populace. He stated, “the government aimed at providing quality and affordable bread to the masses.”

He said that the recent reduction of Rs 1,200 in the price of flour was the biggest drop in the commodity’s prices in the nation’s history.

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Day four of the AJK inflation protest begins as talks come to a standstill.

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Following the collapse of talks between the Awami Action Committee and the AJK government on Sunday, the shutdown strike and protests in Azad Kashmir over rising flour and energy costs started their fourth day on Monday.

The ongoing shutdown and wheeljam strike would continue until their demands are fulfilled, according to the Awami Action Committee.

AAC-led march on state capital Muzaffarabad today has brought the valley to a near stop. The caravans are coming from many AJK cities, and they are headed towards Rawalakot. The march is being caused by the impasse in the negotiations.

Reportedly, the demonstrators have blocked the 40-kilometer Kohala–Muzaffarabad Road, which connects Kohala Town and Muzaffarabad, multiple times.

Traffic on main thoroughfares and roads has decreased, and large police contingents have been stationed at strategic points and roundabouts.

After fighting broke out between the police and demonstrators in Mirpur on Saturday, which left one policeman dead and numerous others injured, the AJK government dispatched Rangers.

Everything is completely suspended, including internet and cellular services, business, and education.

Under the pretext of talks, Awami Action Committee leader Sardar Umar Nazir Kashmiri has charged that the administration is using deceptive methods.

Apart from the flour subsidy, he continues, the administration will not budge on any other demand.

CONVENE MEETINGS, PRESIDENT, PM

All parties involved have been asked by Prime Minister Shehbaz Sharif and President Zardari to use moderation and engage in discussions to find a solution. According to both, the demonstrators in Azad Kashmir should have their legitimate demands met.

The issue in AJK will be the topic of a significant meeting that Prime Minister Shehbaz Sharif is calling today, Monday.

The skirmishes between the demonstrators and the AJK police caused anxiety for the premier on Sunday.

Speaking with Chaudhry Anwarul Haq, the prime minister of AJK, he said he also gave the office-bearers of the All-Pakistan Muslim League-Nawaz in AJK instructions to speak with the leaders of the Awami Action Committee.

Olive Branch is offered by AJK PM.

Prime Minister of Jammu and Kashmir Chaudhry Anwarul Haq stated on Sunday that his administration was ready to lessen the burden of exorbitant grain and energy costs.

Regarding Saturday’s meetings with the demonstrators, Prime Minister Haq declared, “We are determined to implement the agreement we have reached with the Awami Action Committee.”

Politicians, according to Haq, have found solutions to issues through discussion and “we are ready to talk with the Awami Action Committee at any level and the demands related to the government of Pakistan will be raised before the federation.”

In order to ease the burden of rising flour and power prices, he also expressed a willingness to modify the development budget if needed.

The AJK prime minister stated that his government’s first priority was ensuring public safety, and he further stated that no force was applied to the demonstrators.

Sub-inspector Adnan Qureshi was killed in a confrontation with demonstrators in Mirpur, and hundreds of people attended his funeral on Monday.

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Today’s National Assembly session is scheduled.

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The National Assembly (NA) will meet today (Monday) at the invitation of President Asif Ali Zardari.

At 4:00 p.m., the National Assembly will convene in the federal capital at Parliament House. The meeting’s agenda has been released by the assembly secretariat.

As per Article 54(1) of the Constitution of the Islamic Republic of Pakistan, the President has the authority to call a session of the National Assembly.

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