Donors eager to extend $7.4bn aid, bureaucratic hurdles impede Pakistan’s flood-hit projects

Foreign nations and international donors are set to provide Pakistan with $7.4 billion in financial support, but flood-hit development projects are facing delays due to provincial capacity and bureaucratic issues.

During the Geneva Donor Conference in January 2023, the commitment from different countries and international donor agencies comprised a total of $10 billion, of which $7.4 billion was designated for development projects spanning 17 sectors.

Major contributors at the Geneva conference included the World Bank with $2.1 billion, the Asian Development Bank with $1.5 billion, the Asian Infrastructure Investment Bank with $1 billion, and Saudi Arabia with an additional $1 billion. Other nations also joined in the substantial funding commitment.

As reported by BR, a senior official from the Ministry of Planning expressed concerns during a casual conversation with a group of journalists. He emphasized that while international donor agencies are enthusiastic about supporting development projects, significant hurdles, particularly in Balochistan province, are impacting their execution.

A specific instance cited was the inability to initiate a $400 million development project in flood-affected areas of Balochistan due to these capacity constraints.

Regarding grants for these projects, the official mentioned that there is an $850 million grant allocated for development initiatives.

In terms of regional allocation, Sindh is expected to receive the lion’s share of financing, amounting to $7 billion, primarily to aid flood-affected regions. Additionally, an allocation of $500 million has been set aside for housing-related projects.

When questioned about the delays in project implementation, the official acknowledged that capacity limitations and bureaucratic hurdles in various provinces are impeding progress.