Foreign Minister Bilawal Bhutto-Zardari of Pakistan has made a bold call for world institutions, including the International Monetary Fund (IMF), to not burden the country’s flood-affected population with inflation. This plea comes as Pakistan begins its formal talks with the IMF to discuss an economy-rescue plan that includes a $1.1 billion loan payment from a $6.5 billion bailout package, which was implemented to prevent an economic meltdown in the country back in 2019.
To meet the IMF’s demands, the Pakistani government has already raised the prices of petroleum products, which has caused a further increase in the already record-high inflation. This move will also cause the prices of power, gas, and other commodities to rise. The bailout package is critical for the country of 220 million people, as the foreign exchange reserves held by the State Bank of Pakistan are at a critical level of around $3 billion. This amount is only enough to cover imports for less than a month.
While addressing a donor conference for the flood-stricken population of Sindh in Karachi, the Foreign Minister stated, “A natural calamity like the floods was doomsday before the judgement day for us.” At the conference, Bilawal also inaugurated the release of funds to construct homes for those affected by the floods in the province. The conference was jointly organized by the Sindh government and the United Nations Development Programme (UNDP) to discuss the rehabilitation of areas impacted by the catastrophic floods in the province.
The funds will initially be utilized in eight disaster-hit districts in Sindh: Larkana, Sukkur, Dadu, Hyderabad, Thatta, Shaheed Benazirabad, Umerkot, and Tando Allahyar. The Sindh administration has signed an agreement to reconstruct these homes through a public-private partnership, with the agreement being signed by CEO Housing Khalid Shaikh and Hadi Bux of the Sindh Rural Support Programme.
According to disaster management officials, last year’s floods resulted in over 1,700 deaths and the displacement of 8 million people. The flooding also destroyed around a million homes and businesses across the country of 220 million people. At present, around 5 million people, mainly in Sindh and the southwestern province of Balochistan, are still exposed to floodwater months after monsoon rains and melting glaciers caused the disaster.
FM Bilawal highlighted the support received from global financial institutions, especially the World Bank, and spoke about the ongoing talks between the federal finance minister and the IMF. He stated, “It is IMF’s responsibility to provide protection to the flood victims. We are placing the burden of inflation on the IMF’s insistence and request it to ease the conditions with the nation affected by flood devastations.”
The Foreign Minister insisted on targeted relief for flood-affected areas that should focus on agriculture, energy, and fertilizers. He added, “This will be possible when the IMF’s conditions are relaxed. We have the solution and plans for the challenges and problems being faced.”
In conclusion, Bilawal Bhutto-Zardari’s call for world institutions, including the IMF, to not burden the flood-affected population with inflation highlights the critical need for support for the country in its time of crisis. The ongoing talks with the IMF and the support from global financial institutions provide hope for a positive outcome that will ease the conditions for the nation affected by the devastating floods.
