Pakistan will approach international lenders seeking billions of dollars in new loans in the wake of devastating floods that have caused havoc with the country’s overall economy.
“We are not asking for any kind of measure [such as] a rescheduling or a moratorium,” Prime Minister Shehbaz Sharif told the Financial Times. “We are asking for additional funds.”
Shehbaz Sharif told the FT that “the country needed huge sums of money for mega undertakings such as rebuilding roads, bridges and other infrastructure damaged or washed away.”
The prime minister did not specify the amount Pakistan was seeking but repeated that the floods had caused an estimated loss of $30 billion.
Earlier, the United Nations raised its humanitarian aid appeal for Pakistan to $816 million as the country struggles to fight water-borne diseases and hunger after the unprecedented floods.
The continuous depreciation of the Pakistani currency is also pushing up the cost of imports, borrowing and debt servicing, besides exacerbating inflation which is currently all-time high.
