According to the Financial Times, Pakistan may request billions of dollars in loans after severe floods aggravated the economic situation in the South Asian country.
According to Shehbaz Sharif, the country’s prime minister, “We are not asking for any form of measure, [such as] a postponement or a moratorium.”
“We are requesting more money.”
According to PM Shehbaz, the nation needs “large sums of money” for “giant enterprises” including repairing damaged or washed-away roads, bridges, and other infrastructure.
The report reaffirmed an estimate of $30 billion in flood losses but did not specify the amount Pakistan is asking for.
After the record floods, the United Nations increased its humanitarian aid appeal for Pakistan by five times, from $160 million to $816 million. This is because a rise in water-borne infections and concern about growing hunger pose additional threats.
Additionally, the European Union increased its disaster aid to 30 million euros ($29.57 million).
The cost of imports, borrowing and debt servicing are all rising due to Pakistan’s currency fall, which will also make inflation, which is already at a multi-decade high of 27.3%, worse.
The estimated $30 billion in damage to the economy from the floods along with rising concerns about Islamabad’s ability to raise money to meet external financing requirements has worsened the situation.
