The BGA Pakistan Team led by Senior Advisor Aniq Zafar wrote an update to clients on new international funding secured by Pakistan to finance the country’s ongoing recovery from the August 2022 floods.

Context

  • The high-level meeting to help fund Pakistan’s reconstruction was attended by representatives of international financial institutions, private donors and officials from 40 countries.
  • Pakistan has estimated damage of more than $14.9 billion, economic losses of more than $15.2 billion and reconstruction needs of over $16.3 billion.

Significance

  • The pledges exceeded Prime Minister Shahbaz Sharif’s external financing goal of $8 billion from its international partners over the next three years. Top donors included the Islamic Development Bank ($4.2 billion), the World Bank ($2 billion) and the Asian Development Bank ($1.5 billion), along with bilateral commitments from the United States, Saudi Arabia, European Union, Germany, China and Japan.
  • Despite the success of the conference, the International Monetary Fund (IMF) has yet to release the next tranche of $1.1 billion under its Extended Fund Facility. Negotiations have been stalled for the last three months as the two sides disagree over the reforms required to meet Pakistan’s budgetary targets for the 2022-23 financial year.

Implications

  • The support from the international community is seen as a favorable outcome considering Pakistan’s precarious economic situation, with low foreign exchange reserves and a growing current account deficit that was already exacerbated by the impact of these floods.

BGA will continue to keep you updated on developments in Pakistan as they occur. If you have any comments or questions, please contact BGA Pakistan Senior Advisor Aniq Zafar at azafar@bowergroupasia.com

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Senior Advisor

Aniq is one of Pakistan’s most experienced business and public relations advisors, maintaining networks throughout the country’s public and private sectors, civil society and diplomatic circles. As a former journalist, Aniq also has strong relationships in the vibrant and rapidly expanding domestic media environment. Prior to joining BGA, Aniq worked with global clients across sectors on developing communication strategies, crisis communication, understanding regulatory frameworks and political risk assessment. He advised multinational clients from sectors including telecommunications, fast moving consumer goods, tobacco, agriculture, infrastructure, airlines and energy, as well as international development organizations. In the public sector, Aniq advised Pakistan’s Federal ... Read More