'Pakistan faces $30b loss after floods'

Federal Minister for Planning, Development & Special Initiatives, Ahsan Iqbal, chaired the fourth meeting of the Policy and Strategy Committee (PSC) and the Oversight Board on Post-Flood Reconstruction Activities. The meeting, held in Islamabad, reviewed the progress of ongoing projects under the Resilient, Rehabilitation, and Reconstruction Framework (4RF) and discussed the status of international financial pledges. The session, organised by the Ministry of Planning, Development & Special Initiatives, was attended by senior officials, including the Secretary Planning, Secretary Economic Affairs, Chief Secretaries of all provinces, and international representatives from the World Bank, the Asian Development Bank (ADB), the United Nations (UN), and the European Union (EU).

The focus of the meeting was to review and follow up on decisions made in the previous PSC meeting, assess the progress of ongoing 4RF projects, and coordinate efforts with the United Nations Development Programme (UNDP). Financial pledges from international donors and the ongoing reconstruction efforts in flood-affected areas were also key topics of discussion.

In his opening remarks, Iqbal reflected on the unprecedented disaster that struck Pakistan between June and August 2022. He detailed how torrential rains, riverine floods, and urban flash floods submerged one-third of the country, affecting 33 million people and displacing nearly eight million. The catastrophe claimed over 1,700 lives, with children making up one-third of the victims. The minister noted that more than half of the districts in Sindh, Balochistan, and Khyber-Pakhtunkhwa (K-P) were declared disaster-stricken. He also highlighted Pakistan's vulnerability to climate change, despite contributing less than 1% to global greenhouse gas emissions.

"The 2022 floods exposed Pakistan's extreme climate vulnerability," Iqbal said. "Yet, we rank among the top 10 countries most affected by climate change."

In response to the devastation, the Ministry of Planning developed the Resilient, Rehabilitation, and Reconstruction Framework (4RF). This strategic policy outlines four key objectives: enhancing governance and institutional capacity to restore lives and livelihoods, reviving economic opportunities, ensuring social inclusion, and rebuilding infrastructure in a resilient and sustainable manner.

The planning minister provided a sobering update on the financial toll of the disaster. He revealed that the 2022 floods resulted in a total economic loss of $30 billion for Pakistan. While the estimated cost of recovery is $16.2 billion, international pledges so far amount to $10.9 billion, leaving a substantial shortfall of $5.3 billion. The Post-Disaster Needs Assessment (PDNA) estimated that the floods caused $14.9 billion in damages and $15.2 billion in economic losses. The assessment also highlighted the potential for increased food insecurity, projecting that the number of affected people could rise from seven million to 14.6 million. Additionally, over two million housing units were damaged, with 780,000 completely destroyed and more than 1.2 million partially damaged.

Stressing the importance of international collaboration, Iqbal commended the efforts of development partners following the floods. He stressed the need for swift and efficient implementation of recovery projects to rebuild affected communities and restore livelihoods. "The objective of this forum is to assess the progress of projects agreed upon by the federal and provincial governments, alongside our development partners. We must establish a robust monitoring and evaluation mechanism to ensure transparency and efficiency. This will foster greater trust and confidence among our partners," the minister stated.

Iqbal also touched on the challenges of balancing long-term adaptation and short-term recovery efforts. "Initially, we were encouraged to focus on resilience and long-term adaptation. However, as the Geneva Conference approached, development partners shifted their focus to short-term projects due to the high costs of adaptation," he explained. Despite this shift, the minister reassured that the 4RF framework fully incorporates adaptation and resilience components to better prepare for future climate challenges. He pointed to the severe weather changes and significant agricultural losses, particularly in cotton crops, as evidence of the urgency of addressing climate impacts.

During the meeting, the Integrated Flood Resilience and Adaptation Project (IFRAP) was also discussed. The $400 million project aims to assist approximately 35,100 homeowners in rebuilding their homes according to resilience standards. It also provides livelihood grants to smallholder farmers, promotes climate-smart agriculture, and focuses on restoring essential services, such as water supply, irrigation, roads, and other community infrastructure.

The minister expressed concern over delays in flood reconstruction efforts in Balochistan, one of the most underdeveloped regions of Pakistan. He stressed the need for accelerated progress in this province, emphasising that any gaps and obstacles hindering flood-resilient projects must be addressed immediately. Iqbal directed all relevant ministries to resolve issues with zero tolerance for delays and instructed that incomplete PC-I documents be returned within 15 days to avoid further setbacks.

"Our commitment is to rebuild stronger and ensure that future generations are better equipped to face the challenges of climate change," the minister concluded.