ISLAMABAD: Finance and Revenue Minister Senator Muhammad Aurangzeb has acknowledged a significant trust deficit with international donors, as Pakistan awaits the release of pledges made to aid in the recovery from the catastrophic floods of 2022.
Speaking at the Climate Action for Pakistan event organized by Acumen Pakistan on Tuesday, Aurangzeb revealed that during discussions in Geneva, commitments totaling $9 billion were made in response to the 2022 floods. Despite the substantial pledges, he noted that actual funding has not yet materialized.
Aurangzeb attributed this shortfall to the need for credible, monitorable projects to justify the funding. He also pointed out a broader issue of trust in the government, stating that private sector leadership is crucial for moving forward.
He emphasized the necessity for the government to ensure ownership and accountability in the management of these funds.
Following the floods, which affected approximately 33 million people and resulted in over 1,700 deaths, global donors pledged nearly $11 billion at the ‘International Conference on Climate Resilient Pakistan’ in January last year. This amount exceeds half of the estimated funds required for recovery.
Major pledges included $4.2 billion from the Islamic Development Bank, $2 billion from the World Bank, and $1 billion from Saudi Arabia, with additional contributions from the European Union, China, France, and the United States.
However, by April 2024, Pakistan had received only $2.8 billion of the pledged $10.987 billion.
