ISLAMABAD: The United Kingdom has made the decision to triple Pakistan’s financial aid starting from the next fiscal year, 2024-25. This increase will raise the aid amount from the current £41.5 million to approximately £133 million annually
Jo Moir, the head of the UK’s aid arm in Pakistan, the Foreign, Commonwealth, and Development Office (FCDO), recently stated that a significant portion of increased aid would be allocated to various sectors, with a focus on using Official Development Assistance (ODA) for climate mitigation in Pakistan.
additionally, She expressed satisfaction that Pakistan and the International Monetary Fund (IMF) had reached a new deal. Under the Standby Arrangement (SBA) program, which would aid in achieving debt sustainability.
Regarding the increased financial aid, Moir explained that she couldn’t provide the exact figure. But the UK planned to raise its aid share to 0.7 percent of the Gross Domestic Product (GDP). Therefore, the financial assistance might increase from the existing £41.5 million in the ongoing fiscal year 2023-24 to approximately £133 million in the next fiscal year 2024-25.
Moir revealed that the UK was developing a new aid strategy for recipient countries, including Pakistan, after a five-year period. This strategy aims to bring about changes in the traditional approach to development based on the FCDO’s 60 years of experience. The new strategy will focus on supporting Pakistan in addressing structural issues. these are population growth, unlocking the private sector’s potential for higher growth, and mitigating the negative impacts of climate change.
aid Strategy
Although, she outlined four major goals of the aid strategy: improving human capital through technical assistance in governance, healthcare, education, and family planning; enhancing climate response, and disaster adaptation, and utilizing the Benazir Income Support Program(BISP) to assist affected populations; improving water governance and efficiency; and achieving an open society, improving government institutions, addressing gender-based violence, and empowering women.
Regarding the education sector, Moir acknowledged the challenge of over 22 million out-of-school children. With estimates suggest that this number increased by 3.5 million after recent floods. While some children may have returned to school, access to education remains a significant issue in Pakistan.
