Pakistan has estimated the total losses from its recent floods could be as high as $40 billion. This estimate is revised from the original estimate of $30bn. The government is appealing for debt relief from global lenders and more aid from the international community in fighting the environmental catastrophe.
The former finance minister for Pakistan, Miftah Ismail, stated that while the country may not gain the $30 or $40bn that has been lost, they will hopefully receive greater loans from international agencies, or other countries will underwrite loans to Pakistan. Ismail was replaced by Ishaq Dar on September 28.
The unprecedented floods in Pakistan have submerged nearly a third of the country and have been worsened by melting glaciers in the northern part of the country. Pakistan is one of the world’s top 10 most vulnerable countries to climate change, but the country was not prepared to respond to a disaster of this scale. The Asian Development Bank has announced a $2.5bn package and the World Bank pledged $2bn in aid. The International Monetary Fund in August approved a $1.17bn bailout package for Pakistan as well.