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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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Finance Minister Meets With World Leaders at World Economic Forum in Davos

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During his attendance at the World Economic Forum in Davos, Switzerland, Finance Minister Muhammad Aurangzeb has met with officials of organisations and leaders of many nations.
Bangladesh’s Chief Advisor, Muhammad Younas, met with Mohammad Aurangzeb.
On the fringes of the World Economic Forum’s Annual Meeting 2025 Opening Banquet, there was an informal meeting.
Additionally, the Finance Minister met with Anwar Ibrahim, the Prime Minister of Malaysia.
Both leaders discussed economic cooperation and bilateral ties.
Muhammad Aurangzeb also had a meeting with Dp World’s Rizwan Soomro and Yuvraj Narayan.
They talked about how to strengthen Pakistan’s logistics and infrastructure systems to support trade.
“The Pakistani government is committed to advancing joint projects and values partnerships in both business-to-business and business-to-government cooperation,” the finance minister added.

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China will establish a $250 million EV production facility in Pakistan.

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As Islamabad looks to Beijing to work with it to establish industrial zones for the production of electronic vehicles, the media said Wednesday that China’s ADM Group would invest $250 million to establish an electric vehicle manufacturing unit in Pakistan.

With an even more ambitious target of 90 percent by 2040, the Pakistani government established the National Electric Vehicles Policy (NEVP) in 2019 with the goal of having 30 percent of all passenger cars and heavy-duty trucks be electric by 2030.

By 2030, the policy aimed to achieve 50% of new sales for two- and three-wheelers and buses, and by 2040, 90%.

As part of the Special Investment Facilitation Council’s efforts to draw in foreign investment, Radio Pakistan reported that the Chinese company ADM Group had announced an investment of $250 million to establish an EV manufacturing plant in Pakistan.

“The switch to EVs is anticipated to save billions of dollars by reducing the cost of fuel imports.”

More than 3,000 electric vehicle charging stations will be installed throughout Pakistan, a South Asian nation, as part of ADM Group’s $350 million investment in the EV industry last year.

Pakistan announced earlier this month that, as part of its ongoing energy sector reform aimed at increasing demand, it would reduce the power rate for operators of electric vehicle charging stations by 45 percent.

Additionally, financial programs for e-bikes and the conversion of gasoline-powered two- and three-wheeled vehicles are planned by the government.

On January 15, the government approved a lower tariff of 39.70 rupees ($0.14) per unit, which will take effect in a month. The previous tariff was 71.10 rupees.

The government anticipates that investors in the industry will see an internal rate of return of over 20 percent.

There are currently over 30 million two- and three-wheeled cars in Pakistan, and they use more than $5 billion worth of petroleum each year, according to a report that Power Ministry adviser Ammar Habib Khan provided to the government and that was covered by Reuters.

The paper estimates that the ministry will save around $165 million in gasoline import expenses each year by converting 1 million two-wheelers to electric motorcycles in a first phase, at an estimated net cost of 40,000 rupees per bike.

In September, BYD Pakistan, a joint venture between China’s BYD and the Pakistani automaker Mega Motors, informed Reuters that, in accordance with international goals, up to 50% of all vehicles purchased in Pakistan by 2030 will be electrified in some way.

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The government has introduced a comprehensive strategy to enhance industrial investment.

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Authorities are poised to execute an ambitious investment promotion strategy through a collaborative initiative between the National Institute of Public Administration (NIPA) and the Pakistan Administrative Staff College, aiming for substantial enhancements in industrial investment and economic development.

The Special Investment Facilitation Center (SIFC) will be instrumental in this transformative drive by establishing “Business Facilitation Centers” aimed at optimizing investment processes and attracting both domestic and foreign capital.

Principal features of the comprehensive plan encompass:

  1. Forming collaborative working groups to augment domestic and international investment prospects
  2. Formulating a comprehensive strategy to eradicate obstacles to industrial development
  3. Formulating a novel model to tackle issues in the execution of industrial projects
  4. Striving to enhance Pakistan’s international business rating by 50 points
    Targeting $20 billion in foreign industrial investments within the next five years.

The approach prioritizes digital transformation to enhance the transparency and efficiency of the investment process. SIFC’s strategy emphasizes fostering a favorable atmosphere for investors by streamlining bureaucratic processes and offering strategic assistance.

National administration officers are conducting ongoing study to identify and mitigate potential investment barriers, while a specialized research group is formulating a comprehensive strategy to solve current hurdles in industrial growth.

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