Almost two weeks in and the floods rage full throttle across Pakistan. Reports of a second round of devastation dominate headlines in major media outlets. While rescue and relief efforts continue, international concerns over the extent of destruction are mounting.
The UN has made calls on the international community to step up aid. On Wednesday, it appealed for nearly half a billion dollars in aid. Statistics reveal that 13.8 million people have been affected in the absence of a swift flow of aid, and the death toll will likely rise on account of food shortages and disease.
Foreign governments and international aid agencies are mobilizing their efforts, but most flows are bypassing the governmental channels. Significant portions of aid were misappropriated after the 2005 earthquake. So this time around, aid is being channelled directly to those affected.
Justifiably, the head of state has faced a mountain of criticism for his nonchalant attitude but he claims that the Prime Ministers government is knee deep in rescue and relief efforts.
Many of PM Gilanis cabinet ministers were found be on vacation or foreign trips. Most importantly, Finance Minister Dr Abdul Hafeez Shaikh was on also on a personal trip while the country was being ravaged by the worst natural disaster it has ever seen.
Whatever economic stability the country has regained in the recent past will likely be lost.
Paper pushing bureaucrats at the finance ministry confirmed that the GDP growth target of 4.5 percent will certainly be missed in the upcoming year.
Multilateral donors World Bank and IMF have been guiding the Pakistani economy since the country entered the Standby Agreement of 2009 with the Fund.
"In these circumstances, support from the international community will be critical," IMF told BR Research.
"The Fund stands ready to discuss how to help Pakistan manage the economic impact of the floods," Dominique Strauss-Kahn has informed President Zardari, according to IMF.
At the same time, the World Bank has announced that it will lend to Pakistan on a war footing. Details have yet to be announced but initial impressions suggest that structural enhancements in energy infrastructure will be the focus of WB funds.
But, if Pakistan has picked just a single lesson from its own financial history, its that donor funds and aid are not intended to guide the economy towards sustainability.
Resource mobilization from within the economy is perhaps the only road not taken in 60 odd years of the country. Even international donors have been urging economic managers to tighten the noose around tax evaders necks.
Tax collection targets for the ongoing year are under review, in view of the natural disaster. Chairman FBR, Sohail Ahmed, mentioned that they may not necessarily be revised downwards. In every crisis lies opportunity; lets hope its not just another squandered dream.
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