ISLAMABAD: After the devastating floods in Pakistan pushed the country further down the economic crisis ladder, it will now ask international lenders for billions of dollars in loan, reports by foreign media said.
Prime Minister Shehbaz Sharif has clarified that Pakistan is not looking for any kind of measure [such as] a rescheduling or a moratorium, but is rather asking for additional funds.
Pakistan needs “huge sums of money” for “mega undertakings” such as rebuilding roads, bridges and other infrastructure damaged or washed away, PM Shehbaz was quoted as saying.
He did not, however, specify a figure on how much the country is aiming for, but repeated an estimate of $30 billion of flood losses, the report said.
The UN recently increased its humanitarian aid appeal for Pakistan by five times to $816 million from $160 million amid a rise in water-borne diseases due to the floods.
The European Union, too, raised its flood assistance to 30 million euros ($29.57 million).
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.
Meanwhile, the cost of imports, borrowing and debt servicing has also gone up because of a decline in the Pakistani rupee. It will worsen inflation, which is already running at a multi-decade high of 27.3%.
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