Web Desk (LTN NEWS): The World Bank announced Friday that Pakistan’s loss and damage assessment report, compiled by foreign organizations, will be released next week. The nation must take challenging steps for economic recovery
Following the floods that left over 1,700 people dead, millions of people without homes, and ruined millions of acres of crops, Pakistan has pleaded for climate justice and requested billions of dollars in funding.
To raise money for the restoration and rehabilitation of the flood victims, a donor’s conference is also anticipated later this year in France.
The World Bank stated that it could not comment on the estimates provided; however, devastating floods have inflicted massive damage.
It went on to say that UNDP, the European Union, and other foreign organizations were involved in the report’s development and that money for restoration and reconstruction could only be finalized after the survey was completed.
Read Flood kills 37 more people, bringing the total to 1,545
Although the World Bank acknowledged that reforms would be challenging due to the worsening economic circumstances following the floods, it anticipated that Pakistan would continue to pursue reforms as pledged.
“For economic revival, Pakistan must make difficult decisions,” it stated.
$16 billion is required
In a recent interview with international media, Finance Minister Ishaq Dar stated that Pakistan urgently requires more than $16 billion to recover from disastrous floods.
Dar stated that the flood donors’ conference promised by French President Emmanuel Macron will take place next month and hoped it would assist Pakistan with immediate and long-term needs.
According to a new assessment commissioned by the World Bank and the Asian Development Bank, Pakistan suffered $32.4 billion in flood losses and will need $16.2 billion for restoration and rehabilitation.
“Obviously, with that challenge, we have to go back to the drawing board” to allocate cash, he said.
He stated that minor modifications may be required but that “everything is in line” for the IMF’s following review, which could result in further cash.
Read $20b flood losses: 1,325 deaths due to flood
The World Bank reduced Pakistan’s growth projection earlier this month, anticipating the economy to increase by only 2% in the year through June due to floods, inflation, and problematic finances.
Although not criticizing the World Bank’s methodology, Dar stated that he was “a little more optimistic” and predicted 3% growth.
“I think things are settling down already,” he said, not ruling out global troubles’ impacts.
