Pakistan will ask international lenders for billions of dollars in loans after devastating floods exacerbated the country’s economic crisis.
“We are not asking for any kind of measure [such as] a rescheduling or a moratorium,” Prime Minister Shehbaz Sharif told the Financial Times in an interview on Wednesday. “We are asking for additional funds.”
The country needs “huge sums of money” for “mega undertakings” such as rebuilding roads, bridges and other infrastructure damaged or washed away, the FT quoted Premier Shehbaz as saying.
Read: Pakistan seeks rescheduling of $27b bilateral debt, largely owed to China: Dar
PM Shehbaz did not specify the amount Pakistan is seeking, but repeated an estimate of $30 billion of flood losses, the report said.
Earlier this month, the United Nations raised its humanitarian aid appeal for Pakistan five-fold to $816 million from $160 million, as a surge in water-borne diseases and fear of growing hunger pose new dangers after the unprecedented floods.
The European Union also scaled up its flood assistance to 30 million euros ($29.57 million).
A decline in Pakistan’s currency is also pushing up the cost of imports, borrowing and debt servicing, and will further exacerbate inflation already running at a multi-decade high of 27.3%.
Read: Pakistan not going to the Paris Club to reschedule loans: Ishaq Dar
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.
“There is a gap — and a very serious gap — which is widening by the day between our demands and what we have received,” the PM said.
To a query on PTI chief Imran Khan’s demand for early elections, he said that the coalition government was concerned if there was dissatisfaction leading to deeper political instability and the country was not able to achieve its basic requirements and goals, it could “lead to serious problems”.
“I’m not saying it in terms of any kind of threat, but I’m saying there’s a real possibility,” he said.
“We are in a war against climate change-induced havoc, and we have become a victim,” he said, “tomorrow another country can and we don’t want that to happen.”
