Pakistan will request billions of dollars in loans after the country’s economic situation was made worse by devastating floods, According to the Financial Times.
According to Prime Minister Shehbaz Sharif, “We are not calling for any form of measure [such as] a rescheduling or a moratorium.” “We are requesting additional funding.”
Shehbaz was quoted by the FT as adding that the nation needed “vast quantities of money” for “mega undertakings” like restoring roads, bridges, and other infrastructure that has been destroyed or washed away.
According to the report, the prime minister reiterated an estimate of $30 billion in flood losses but did not specify the amount Pakistan is asking for.
The United Nations increased its humanitarian aid appeal for Pakistan earlier this month by five times, from $160 million to $816 million, as a rise in water-borne diseases and concern over growing hunger pose new dangers following the massive floods.
Additionally, the European Union increased its disaster aid to 30 million euros.
Inflation is already at multi-decade highs, and a decline in the Pakistani rupee will make it even more expensive to borrow money and pay off debt.
The situation has gotten worse as a result of the floods’ projected $30 billion in economic damage and growing worries about Islamabad’s capacity to collect funds to meet external funding commitments.