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Pakistan to materialise flood aid of over $10bn in three phases

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  • Three phases include short-term, medium-term and long-term.
  • There are four Strategic Recovery Objectives as per 4RF.
  • SRO1 seeks to rebuild governance-related physical infrastructure.

ISLAMABAD: Pakistan has managed to secure over $10.5 billion in flood pledges which would be materialised in three phases — short-term for up to one year, medium-term for up to three years and long-term for up to five to seven years period — for the reconstruction of flood-affected areas, The News reported Tuesday. 

The cash-strapped nation clinched the pledges at the one-day International Conference on Climate Resilient Pakistan in Geneva after Prime Minister Shehbaz Sharif launched an $8 billion flood aid appeal, aimed at helping the country overcome the devastation caused due to the cataclysmic floods.

The country, with a $350 billion economy, secured commitments worth $8.57 billion by the end of the plenary session I, while it managed to secure over $2 billion in the second session.

As per the Resilient Recovery, Rehabilitation, and Reconstruction Framework (4RF), there were four Strategic Recovery Objectives (SRO). SRO1 includes enhancing governance and the capacities of the state institutions to restore the lives and livelihoods of the affected people. Especially the most vulnerable SRO1 seeks to rebuild governance-related physical infrastructure that has been destroyed and damaged by the floods, as well as restores and enable a governance structure and system that fosters efficiency, effectiveness, transparency and inclusiveness.

The key will be to enable all tiers of the government to prepare and respond to natural hazards and climate change through gender-informed and community-led, structural and non-structural risk reduction measures, including through ecosystem adaptation and landscape restoration.

Strategic priorities include short-term objectives, such as improving public financial management, public procurement, audit, and anti-corruption measures while medium-term objectives, such as undertaking detailed and localised multi-hazard risk assessments and integrating data into local level decision support systems and long-term objectives, such as strengthening meteorological monitoring and early warning systems and increasing technical capacities of climate change and environmental management agencies at federal and provincial levels.

SRO2 includes restoring livelihoods and economic opportunities. It seeks to restore livelihoods and economic opportunities through a multi-sectoral approach. It has two key pillars — promoting livelihoods recovery through agriculture and employment restoration and boosting economic opportunities through commerce, industry, tourism, markets and financial interventions.

Strategic priorities include short-term objectives, such as direct cash contributions, in-kind inputs, and cash-for-work interventions as well as the restoration of jobs through e-commerce and job guarantee programmes. Meanwhile, medium-term objectives, such as rehabilitation of damaged public and private infrastructure by using employment intensive approaches and implementing business regulatory reforms and long-term objectives such as legal, policy, and institutional reforms for the development of the credit market and provision of interest free loans or community investment funds through local non-governmental organisations (NGO) without micro-finance institutions.

SRO3 includes ensuring social inclusion and participation. It seeks to ensure that no one is left behind and that mainstreaming approaches are taken so that social inclusion leads to social sustainability. Strategic priorities include short-term objectives, such as the provision of protection services, psychosocial support, and the adoption of community-driven development approaches.

Meanwhile, medium-term objectives include establishing missing facilities and more robust protection for those more vulnerable to violence, tracking and exploitation and long-term objectives such as the acceleration of community-level disaster preparedness activities with social inclusion and gender equality sensitivity, school meals programmes targeting for the most vulnerable, multi-purpose cash grants for the most vulnerable (women and children) and rehabilitation of flood-affected heritage sites.

SRO4 includes restoring and improving basic services and physical infrastructure in a resilient and sustainable manner. It seeks to restore basic social services for the affected communities and carry out resilient infrastructure rehabilitation and reconstruction, support led by strengthening human capital, institutions, and policies to respond to future disasters.

Strategic priorities include immediate and short-term objectives, such as supporting reconstruction and rehabilitation of housing, prioritising the most vulnerable, repairing and improving existing physical infrastructure, repairing water infrastructure and strengthening weak sections before the next monsoon. 

The medium-term objectives include a detailed technical evaluation of damaged transport and communication infrastructure, improvement of contingency plans and their performance in the health sector and long-term objectives, such as the establishment of a regulatory framework and tariff structure for Water, Sanitation and Hygiene (WASH) and municipal services, enhancing the disaster resilience of the energy distribution network, a flood susceptibility analysis of the entire infrastructure network, and climate and disaster-resilient rehabilitation of irrigation, drainage, dams, and dikes.

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The amount of trade between Saudi Arabia and Pakistan hits $700 million.

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Through the Special Investment Facilitation Council (SIFC), Pakistan’s trade connections with Saudi Arabia have grown significantly, with bilateral trade volume rising from $546 million to $700 million and exports to the Kingdom growing by 22%.

As bilateral economic cooperation continues to grow, Saudi investors have shown a strong interest in Pakistan’s construction, energy, agricultural, and information technology sectors. The objective for exporting IT services between the two countries has been raised from $50 million to $100 million.

Saudi Arabia has set up a help desk dedicated to making it easier for Pakistani IT companies to register in the Kingdom in order to expedite commercial procedures. The goal of this program is to speed up economic collaborations between the two countries and lower administrative barriers.

The well-known Saudi restaurant chain AlBaik has revealed plans to open locations in Pakistan, which is a big step for the food service industry and should lead to the creation of new job possibilities in the area.

Officials have noted that stronger business links between the two countries lead to greater economic stability, and the SIFC has played a crucial role in promoting these trade advancements. For bilateral trade and investment projects, the Council remains a crucial facilitator.

According to a trade official with knowledge of the developments, “the establishment of dedicated support mechanisms, such as the help desk for IT companies, demonstrates a commitment to long-term economic partnership,” The goal of these programs is to improve the conditions for commercial collaboration between the two nations.

The increasing amount of trade and the diversity of investment sectors show that Saudi Arabia and Pakistan’s economic ties are changing as both countries seek to deepen their business alliances in a number of industries.

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After more than 50 years, Bangladesh and Pakistan resume direct trade.

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After more than 50 years, the two governments will resume direct bilateral trade, with Bangladesh’s food ministry announcing Sunday that it will receive a supply of 25,000 tonnes of rice from Pakistan next month.

After former Prime Minister Sheikh Hasina was overthrown last August, relations between Bangladesh and Pakistan have begun to improve after decades of tense relations.

Since then, there have been increased bilateral interactions between Bangladesh and Pakistan. Nobel laureate Muhammad Yunus, the interim government’s senior adviser, has met twice with Pakistani Prime Minister Shehbaz Sharif.

According to the food ministry, Dhaka completed an agreement earlier this month to import grains from Pakistan.

“On March 3, the first shipment of 25,000 tonnes will reach Bangladesh,” Zia Uddin Ahmed, a ministry assistant secretary, told Arab News.

“This is the first time that Bangladesh has started importing rice from Pakistan at the government-to-government level since 1971.”

Following direct maritime contact between the two South Asian countries in November—a Pakistani cargo ship stopped in Bangladesh for the first time since 1971 with imports and exports arranged by private companies—their trade relations grew.

Resuming trade with Pakistan is a significant step for Bangladesh, according to Amena Mohsin, a lecturer at North South University and a specialist in international relations.

“We want to see progress in our bilateral relationship with Pakistan. Most significantly, we are currently going through a low point dispute with India, even though we constantly diversify our partnerships.

This most recent move to purchase rice from Pakistan is really significant in this context,” she told Arab News.

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The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

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As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.

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