UN issues flash appeal for $160 million to help Pakistan deal with catastrophic floods 

Flood-affected people gather outside their flooded houses at Shikarpur in Sindh province on August 30, 2022. (AFP)
Short Url
Updated 25 September 2022
Follow

UN issues flash appeal for $160 million to help Pakistan deal with catastrophic floods 

  • The UN secretary-general says the fund will provide 5.2 million people with food, water and other emergency support 
  • Pakistani FM says the country has become ‘ground zero’ of global warming, this century’s biggest existential threat 

ISLAMABAD: The United Nations (UN) on Tuesday issued a flash appeal for $160 million to help Pakistan cope with catastrophic floods that have killed more than 1,100 people, affected 33 million and destroyed homes, crops and critical infrastructure across the South Asian country. 

Early estimates have put the damage from the floods at more than $10 billion, the Pakistani government has said, adding the world was under an obligation to help the South Asian country cope with the effects of climate change. 

The appeal was issued by UN Secretary-General Antonio Guterres in his video message during the joint launch of 2022 Pakistan floods response plan by the Pakistani government and the UN simultaneously in Islamabad and Geneva. 

“The United Nations is issuing the flash appeal of $160 million to support response led by the government of Pakistan,” Guterres said, adding that this fund would provide 5.2 million people with food, water, sanitation, emergency education, protection and other support. 

Pakistan was awash in suffering, he said, the climate catastrophe had killed more than 1,000 people. 

“Millions are homeless, schools and health facilities have been destroyed, livelihoods are shattered, critical infrastructure have been wiped out and people’s hopes and dreams are washed away,” the UN secretary-general said. 

The Pakistani people were facing a monsoon on steroids and every province of the country had been affected, he said. 

“In response of devastation, the government of Pakistan has released funds including immediate cash relief but the scale of needs is rising like the flood waters and it required the world’s collective and prioritized attention,” Gutteres said. 

“Let us all step up in solidarity and support to the people of Pakistan in their hour of need.” 

Addressing the ceremony, Pakistan’s foreign minister Bilawal Bhutto-Zardari urged the international community to extend their support to Pakistan in these challenging times. 

“I would like to urge the international community to give its full backing to the flash appeal to help our people most in need which prioritizes focused interventions in areas of education, food security and agriculture, health, nutrition, protection, shelter and non-food items, and water, sanitation and hygiene,” he said. 

“Pakistan has become the ground zero of this century’s biggest existential threat, global warming.” 

Seventy-two districts of the country have been declared calamity-hit, with hundreds of thousands of women, children and men displaced and forced to spend days and nights in camps and in open areas under a merciless sky, according to Bhutto-Zardari. 

“Lack of access to food, clean water, shelter and basic health care is making life harder for them with each passing day,” he said, adding the country also needs assistance with livelihoods and livestock support as well as relief machinery and equipment. 

He said the Pakistani government was cognizant of its responsibilities and had been leading the humanitarian response with invaluable support from the UN and humanitarian partners. 

“As part of our national effort, we have earmarked Rs35 billion ($173 million) to help flood-affected people through direct cash transfers,” the foreign minister said. 

This money will be disbursed through the Benazir Income Support Programme (BISP) to 1.5 million families, with each receiving Rs25,000 ($115) in immediate cash relief, according to the foreign minister. Another Rs5 billion ($23 million) have been allocated for the National Disaster Management Authority (NDMA) for relief works. 

“The Government is also providing Rs1 million ($4,615) in ex-gratia compensation to the next of kin of each deceased, Rs250,000 ($1,154) for injuries and for partially damaged houses and Rs500,000 ($2,308) for destroyed houses,” he said. 

Planning Minister Ahsan Iqbal said Pakistan was currently facing the horrors of climate change with unprecedented, devastating flash floods and hill torrents that had washed away roads, homes, crops and communities. 

“Almost half of the country’s cotton crop has been washed away, while vegetable, fruit and rice fields have sustained significant damage, posing serious challenges to food security,” he said at the ceremony. 

Preliminary estimates of rehabilitation were higher than $10 billion, Iqbal said, adding the Pakistani government was looking forward for assistance from aid agencies, friendly countries and international donors. 

Julien Harneis, the UN resident and humanitarian coordinator, said the scale of the catastrophe was beyond comprehension as hundreds of thousands of people had been rendered homeless. 

“I spent the last week in the districts of Balochistan and Sindh, there was hundreds of thousands of people on the move and trying to find a secure place,” he said, adding that their hands were stretched out, asking for help. 

“This is the time that the international community step up for the people of Pakistan as climate change-driven catastrophe demands international solidarity.” 


Majority market participants expect no rate change ahead of Dec. 15 Pakistan policy meeting – survey

Updated 7 sec ago
Follow

Majority market participants expect no rate change ahead of Dec. 15 Pakistan policy meeting – survey

  • Topline survey finds 70% expect State Bank to hold interest rate at 11%
  • Analysis cites flood-driven inflation risk, rising imports as key reasons for caution

ISLAMABAD: Most financial market participants expect Pakistan’s central bank to keep its benchmark interest rate unchanged at 11% when it meets on December 15, according to a new survey by brokerage Topline Securities.

Pakistan’s State Bank has held rates steady since May and maintained the same stance in October, its fourth consecutive pause, after recent floods had a milder-than-expected impact on crops and inflation. The central bank said earlier that the effects of previous interest rate cuts were still filtering through the economy, meaning businesses and consumers were still adjusting to cheaper borrowing. Because of that, the bank felt it was better to keep policy steady for now instead of cutting rates again.

The latest Topline poll reflects that sentiment, with investors largely expecting the bank to hold until inflation pressures ease more decisively. Pakistan has reduced rates sharply over the past 18 months — from a peak of 22% in 2024 to 11% at present — but policymakers have warned that price risks could rise again as imports pick up and agriculture recovers.

Topline said 70% of market participants expect no change, while 30% foresee a cut of 25–100 basis points. No respondents expect an increase despite one member of the SBP board having voted for a rate hike during the September meeting, according to published minutes.

“Continuation of status quo opinion in majority of the participants is driven by floods, higher inflation expected in the second half of FY26, and base effects,” Topline said in its note summarizing the poll.

The brokerage added that lowering rates too soon could encourage non-oil imports at a time when Pakistan is trying to consolidate gains in foreign exchange reserves and keep the balance of payments stable. Price pressure is expected to sit above the central bank’s medium-term 5–7% target range for several months before easing next fiscal year.

Yields in the secondary market also point to stability. Six-month treasury bills are trading near 10.97%, almost unchanged since October, while the six-month interbank benchmark stands at 11.16%.

Pakistan raised its GDP outlook in October to the upper half of its 3.25–4.25% projection range for fiscal year 2026, citing better crop output and improvements in industrial demand. 

The central bank expects reserves to rise to around $15.5 billion by the end of 2025 and close to $17.8 billion by June 2026, assuming planned inflows materialize.