Web Desk (LTN NEWS): The Financial Times reported on Wednesday that Pakistan would ask international lenders for billions of dollars in loans because devastating floods have worsened the South Asian country’s economic crisis.
“We are not asking for a rescheduling or a moratorium,” Prime Minister Shehbaz Sharif told a UK publication.
We are looking for more money: PM Shehbaz
Shehbaz Sharif told the Financial Times that the country needs “huge sums of money” for mega projects like rebuilding roads, bridges, and other damaged or washed-away infrastructure.
The report said that the prime minister did not say how much money Pakistan wants, but he did say that flood damage was estimated to cost $30 billion.
This month, the United Nations raised its humanitarian aid request for Pakistan from $160 million to $816 million, which is a five-fold increase. This is because more diseases are spread by water, and people are worried that hunger will get worse.
The European Union also gave an extra 30 million euros ($29.57 million) to help with the floods.
The value of Pakistan’s currency is decreasing, driving up the cost of imports, borrowing, and paying off debt. This will worsen inflation, which is already at a multi-decade high of 27.3%.
The economic damage from the floods, estimated to be $30 billion, and growing worries about Islamabad’s ability to get the money it needs from outside sources have worsened things.
