—— Says international lenders would spend billions on war but only offer loans to flood-ravaged Pakistan
—— Discusses rehabilitation of Pakistan’s flood victims with UN Chief on the sidelines
—— Let’s stand up and say no to injustice, Shehbaz tells World leaders, communities In meeting with John Kerry PM emphasises resources mobilisation under Loss and Damage Fund
PARIS: Prime Minister Shehbaz Sharif decried on Thursday the response of international institutions to Pakistan’s ap-peals for funds following cata-strophic floods in 2022, saying that it was offered loans whereas billions were being spent on the defence of “a country or countries”.
The premier made these remarks at the two-day New Global Financing Pact Summit in Paris where he stressed the need for a fair and equitable for-mula for the distribution of financial resources in the world.
He is among several global leaders gathered in Paris for the summit to tease out a new consensus on international economic reforms to help debt-burdened developing countries face a growing onslaught of challenges, particularly climate change.
PM Shehbaz began his speech by recalling the devastation caused by floods in Pakistan last year, “as a result of climate change”.
The PM said 33 million people were affected by those floods and millions of acres of standing crops was washed away while around 1,700 people had died. Moreover, he added that half a million animals drowned in the floods and two million house were either completely demolished or partially damaged.
To help those affected by the floods, he said, “we had to cough out hundreds of millions of dollars from our own pocket with our scarce resources … Of course, we are very grateful to our friendly countries across the globe for their valuable and timely contribution, but largely, the cash amount had to be generated from our own resources.
“And when we approached international institutions, they said, ‘Well, we can give you loans.’” The premier said when these institution were asked whether the already stretched resources of Pakistan be burdened further, their reply was debt-structuring would not be good for the country.
“We know that there are tensions around the globe, and billions and billions of dollars are being spent over there, to defend this [country],” he said in apparent reference to Ukraine.
“On one hand, you are ready to provide everything for the defence of a country or countries — that is perfectly okay — but when it comes to the question of saving thousands and thousands of people from dying, then [one has] to bor-row money at a very high cost. Then you have to … beg and borrow and further deteriorate your already very precari-ous financial situation,” he decried.
The premier emphasised the need for a “fair, equitable and judicious” formula for the distribution of financial re-sources. Otherwise, he said, “this world will never live in peace”.
“Unless we come forward in generous terms to provide an opportunity, and a system, and a mechanism which will satisfy the most vulnerable at bare minimum, and which will create harmony in terms of economic justice and fairness, this world shall always be in trouble.
“It’s never too late. Let’s stand up and say no to injustice,” he concluded. Prior to the summit, PM Shehbaz met world leaders, as well as heads of the UN and International Monetary Fund (IMF), and highlighted the challenges faced by developing nations, particularly as a consequence of climate change.
According to state broadcaster Radio Pakistan, PM Shehbaz met Macron on the summit’s sidelines today and under-lined that developing nations were facing “problems of non-availability of resources, burden of interest for debt pay-ments and slow development”.
And the devastating effects of climate change had added to the hardships of these already troubled countries, the report quoted him as saying.
It added that the premier appreciated Macron for his “bold step” towards a system that was based on financial justice for developing countries.
Helping indebted developing countries under a New Global Financing Pact was the need of the hour so that their citi-zens could get relief, he said, adding that the French president had made a significant effort to create global consensus on an important issue.
The premier also thanked the French president for inviting him to the moot and “his warm hospitality”. For his part, Macron thanked PM Shehbaz for attending the summit, and the the two leaders agreed to remain engaged on issues of mutual interest, the Radio Pakistan report said.
The premier also met United Nations (UN) Secretary General Antonio Guterres. During his exchange with the UN chief, the premier reiterated that climate change had exacerbated the financial burden on developing countries, which he said were facing new challenges in increasing economic growth and maintaining fiscal balance.
He stressed the utilisation of the Loss and Damage Fund established during COP27 to provide financial assistance to developing nations.
The premier termed the summit in Paris for a new global financial agreement “ a good start in the right direction“ and emphasised the need for fair distribution of global financial resources along with climate justice for developing coun-tries.
Later, he said he discussed with the UN chief the current status of rehabilitation of Pakistan’s flood victims.
“I thanked the secretary general for his consistent and powerful advocacy of climate change and his call for helping the developing countries to cope with the challenge.
“We agreed that the international community needs to deliver on its pledges for climate justice,” he tweeted.
According to the Prime Minister’s Office (PMO), the premier also met Saudi Crown Prince Mohammad Bin Salman and both leaders agreed to ex-pedite the collaborative process in order to further bolster the bilateral cooperation.
The statement said the two leaders also exchanged views on matters of bilateral interest and PM Shehbaz extended best wishes for Saudi King Sal-man bin Abdulaziz. In return, the crown prince expressed goodwill for the government and people of Pakistan, the statement added.
Later, the PM met US climate envoy John Kerry and the two leader extended good wishes to each other, according to an update on the PML-N’s Twitter.
The statement said the premier said climate change was a common problem of countries across the world and stressed that joint strategies and efforts were needed to address this issue.
Kerry being the first US Special Presidential Envoy for Climate was a recognition of the importance of the issue, he said, highlighting that increasing problems of climate change were having an adverse effect on economic growth and development, particularly in developing nations.
“Developing nations, in particular, should play a role in helping developing countries deal with the negative effect of climate change on economic growth,” he emphasised.
He said after establishment of the Loss and Damage Fund at COP 27, promises of the provision of resources would have to be realised.
The premier also mentioned that the catastrophic floods of 2022 had added to Pakistan’s problems.
He termed the Paris Summit a “message of hope” for developing countries, highlighting the need for reform in the global financial structure to en-sure the availability of resources to developing nations.
Kerry agreed with the premier on climate change increasing “risks” for developing countries, the PML-N statement said.
It added that both leaders agreed to proceed on the matter with consultation.
According to the PMO, PM Shehbaz also met Egyptian President Abdel Fattah al-Sisi.
Earlier in the day, PM Shehbaz met IMF Managing Director Georgieva and apprised her of steps taken to address Paki-stan’s flailing economy, ex-pressing hope that the funds allocated under the lender’s Extended Fund Facility (EFF) would be released as soon as possible.
The premier’s meeting with Georgieva comes as Pakistan’s ninth review by the IMF under the 2019 EFF for the release of $1.2bn stays pending with less than 10 days remaining till the programme’s expiry on June 30.
The country was expected to get around $1.2bn from the lender in October last year as part of the EFF’s ninth review. But almost eight months later, that tranche has not materialised as the IMF says Pakistan has been unable to meet important prerequisites.
Because of this delay, the programme’s tenth review, which was originally part of the plan, is all but out of question.
According to a statement issued by the Prime Minister’s Office today, PM Shehbaz outlined the steps taken by the government for economic growth and stability in his meeting with the IMF managing director. –Agencies
