Mismatch between funds promised and delivered

ISLAMABAD: There is total mismatch between what is promised and delivered by the international community as donors have pledged assistance of approximately $1 billion but only 15 per cent has been released so far.

The finance ministry’s statistics showed that 63 bilateral and multilateral donors have so far pledged $991.8 million to provide relief to over 7.5 million people displaced by the worst floods in the country’s history. The government’s latest estimates put losses to the economy at $43 billion, equivalent to the damage inflicted during nine years of the ‘war on terror’. An estimated 20 million people have been affected by the floods.

The donors have released just $150.2 million or 15.1 per cent in cash and goods from total commitments. The releases have slowed down while pledges are gradually increasing. Until last week, disbursements of both goods and cash amounted to 17.5 per cent of the total promises of $650 million.

The United Nations has already warned that time was running out and the international community has to step up efforts to save millions of people from the second wave of deaths as a result of water-borne diseases and provide shelter as the winter is approaching fast.

The pledges in cash amounted to $607.2 million, which are 60.3 per cent of total commitments. The disturbing aspect is that the releases of cash are only $89.6 million or 9 per cent of total pledges. Until last week, the disbursements were slightly higher at 10 per cent of the commitments.

The international community has pledged to provide $195.7 million of goods, which is one-fifth of total commitments. However, so far $60.6 million worth of goods have been delivered, some 6.1 per cent of total pledges.

From the total $991.8 million, 68.6 per cent would come through the United Nations and other international non-government organisations as the world is reluctant to trust Pakistani political leadership due to transparency issues.

The donors would give $281.2 million in cash and goods through the government channel, which are 28.4 per cent of total pledges.

Saudi Arabia and the  US are the largest contributors. Total commitments from Saudi Arabia amount to $203 million. It is also the largest distributor as it has disbursed $5.3 million in cash and delivered $40 million of goods.

The United States has committed $200 million but so far, according to the finance ministry, it has not released even a single dollar either in shape of goods or cash. The US would give the entire amount through USAID, its implementing arm.

The United Kingdom has increased its commitments to $115 million from $64.6 million, the third largest contributor, but only delivered $2.25 million of goods. It would also provide the aid through the UN and its own wing the Department for International Development.

The European Union, a bloc of 27 nations, is the fourth largest contributor.

The bloc has pledged $89 million and disbursed $20 million in cash.

The UN has disbursed $29 million from its own funds. Turkey has increased its pledges to $13 million, $10 million in cash and $3 million in shape of goods. Spain has already disbursed $1.3 million cash and pledged additional $5.5 million.

Published in The Express Tribune, September 2^nd, 2010.