Aid, Asia-Pacific, Development & Aid, Economy & Trade, Environment, Eye on the IFIs, Global Governance, Headlines, Humanitarian Emergencies, North America, Population

Pakistani Officials Seek Funds, Debt Relief in Washington

Matthew O. Berger

WASHINGTON, Aug 24 2010 (IPS) - Pakistani officials continued their quest for help in light of the floods that have affected 20 million people in their country by meeting with officials at the International Monetary Fund here Monday.

The country has expressed hope that the IMF would loosen terms attached to a 10.66-billion-dollar loan granted in 2008 due to the economic impact of the floods. The loan terms would require deficit and inflation targets Pakistan is not sure it will be able to meet with a post-flood economy.

On Saturday, Masood Ahmed, director of the IMF’s Middle East and Central Asia Department, said in a statement that in addition to the “suffering to millions of people [the floods] also pose a massive economic challenge to the people and government of Pakistan.”

“The scale of the tragedy means that the country’s budget and macroeconomic prospects, which are being supported by an IMF financed programme, will also need to be reviewed,” he said.

Ahmed said the Fund looked forward to meeting with Pakistani officials to discuss “ways in which the IMF can assist Pakistan at this difficult juncture.” The specifics of what was discussed at Monday’s meetings are not yet known.

If the terms are not relaxed, officials have said they will instead seek a new loan package under new terms.

Pakistan has already been promised emergency loans of one billion dollars from the World Bank and two billion dollars from the Asian Development Bank.

The floods are reported to have already taken over 1,600 lives and displaced 4.6 million people as well as causing massive infrastructure damage and covering 1.7 million acres of productive farmland.

Meanwhile, U.S. officials followed up on Secretary of State Hillary Clinton’s announcement of an expanded emergency aid package at the United Nations on Friday by quantifying some of their efforts on the ground in Pakistan.

Noting that the U.S. is the “first and most among contributors” to the relief effort, Deputy Special Representative for Afghanistan and Pakistan Dan Feldman said the government was looking to redirect existing foreign aid funds to Pakistan to meet the needs of flood victims as quickly as possible.

Clinton had announced an increase in aid from 90 million to 150 million dollars. “This money is going towards local and international NGOs, towards U.N .agencies, towards operations for NDMA [National Disaster Management Authority] through the government of Pakistan” as well as in-kind and technical assistance, Feldman said.

In terms of specifics, “seven helicopters operating out of Peshawar and Multan have rescued and transported approximately 1400 individuals and delivered nearly 200,000 pounds of equipment and supply cargo,” according to William McGlynn, principal deputy assistant secretary for the Bureau of International Narcotics and Law Enforcement.

The international community is delivering food to close to two million people in the northern part of the country, according to Acting Director of USAID’s Office of U.S. Foreign Disaster Assistance Mark Ward. “We’re adding 140,000 beneficiaries a day in the food distribution so I think this showing signs that the access is getting a little bit easier in the north,” he said.

He says they have also been able to consult and treat 1.5 million people “all over the country” regarding health concerns, helped WHO deliver medical kits to over two million people, and have provided 700,000 mosquito nets for families returning home.

“Malaria is getting to be a concern – just because of the time of year and so much water,” said Ward, though cholera remains the top disease concern.

And seven more “giant water treatment machines” will be delivered this week to assist the six that are already churning out over four million litres of safe drinking water this month, continued Ward.

“Clean water is still a huge issue. Maybe the most important issue in the relief effort,” he added.

In addition to the water treatment machines, relief flights this week will also bring boats and blankets.

Going forward, “We’re looking at a series of follow-on meetings from the UNGA special session, multilateral in nature, over the next few months to continue to gauge and assess what the needs will be and how we can best meet those as we shift from relief efforts to reconstruction and recovery,” Feldman said.

Those meetings will include a Friends of Democratic Pakistan meeting planned for Oct. 14 and 15 in Brussels, a meeting of special representatives to Pakistan also in October and possibly a meeting on the margins of the September U.N. General Assembly.