The Prime Minister of Pakistan chairs the third meeting of the International Partners Support Group (IPSG) on 25th July 2023 in Islamabad.

Government of Pakistan
Ministry of Economic Affairs
Islamabad:  25th July, 2023

Press Release

The Prime Minister of Pakistan chairs the third meeting of the International Partners Support Group (IPSG) on 25th July 2023 in Islamabad.

The Prime Minister of Pakistan, Muhammad Shehbaz Sharif, chairs the third International Partners Support Group (IPSG) meeting at the Prime Minister’s Office on 25th July in Islamabad, marking one year to the devastating floods in Pakistan. The objective of the meeting was to take stock of the flood recovery progress and realign efforts and priorities for a resilient Pakistan.

The Federal Minister for Economic Affairs, Sardar Ayaz Sadiq, welcomed the distinguished participants and expressed gratitude towards continued support and commitment towards Climate Resilient Pakistan. He highlighted the purpose of constituting IPSG as a forum to facilitate coordinated implementation of the 4RF. He appreciated the role of UNDP as the secretariat of IPSG.

Prime Minister Shehbaz Sharif on Tuesday said that the government had established a robust mechanism in form of the Special Investment Facilitation Council (SIFC) to attract investments with a view to do away with the "addiction" of borrowings and put the country on the course towards self-sustainability. The Prime Minister vowed to rid the country of loans and put on track of self-sustainability.

The Prime Minister, addressing the participants of the third meeting of the International Partners Support Group (IPSG), said the government had chalked out an economic revival plan. Its implementation would require foreign investment and technical support from friendly countries to enhance per acre yield of wheat, sugarcane, and other commodities and focus on other areas of action.

He thanked the member countries and organizations for supporting Pakistan amidst the difficult time of unprecedented floods and told them the people still awaited return to their homes as they lacked funding to rebuild the destroyed houses. This shows the severity of the challenge, which required untiring efforts by the government, friendly countries, and international partners to help Pakistan build climate-resilient infrastructure.

During the meeting, Secretary, Ministry of Economic Affairs, presented an overview of the status of pledges that Pakistan received at the International Conference on Climate Resilient Pakistan – convened in Geneva on January 9, 2023. To further discuss the allocation of resources to build climate resilience in Pakistan, Secretary, Ministry of Planning, Development and Special Initiatives, presented the progress and implementation status of the Resilient Recovery, Rehabilitation, and Reconstruction Framework (4RF). 

While addressing to the meeting, the Prime Minister thanked and appreciated the Federal Ministers for Planning, Climate Change, Finance, Economic Affairs and Foreign Affairs and their teams for reaching out to the international community and organising Geneva Conference where international commitments were made.

He told the participants that the country had been facing economic challenges like international inflation in terms of crude oil and commodities prices. He said that as the government had reached an agreement with the International Monetary Fund (IMF), it would strictly abide by it without any deviation. 

He said his government's term was about to end by the next month, and the upcoming interim government would also surely be adhering to the IMF deal as the first tranche had already been received.

He thanked the friendly countries and IMF Managing Director for helping Pakistan reach the $ 3 billion agreement for a nine-month period.

He said the SIFC would focus on the promotion of agriculture sector and introduction of value-added products which would obviously require an infrastructure to be built from the investment from Gulf nations, America, North America or any other country desiring to invest.

Besides, the Council would also help promote the IT and mining sectors as the country was rich with immense potential in both sectors. 

Prime Minister Shehbaz Sharif assured the meeting that every penny coming from the donors for the rehabilitation of the flood victims would be spent transparently.

He directed the relevant authorities that transparency should be given key importance in the rehabilitation and reconstruction projects of flood-affected areas. Third-party validation should be ensured in every project he directed.

In the meeting, progress on flood recovery in Pakistan was reviewed. The prime minister appreciated the important role of IPSG in increasing cooperation as well as in climate resilience projects.

It was told that $657.5 million were estimated to be received by June 30, 2023, under the pledges made for various projects during the Climate Resilient Pakistan Conference, while $715 million have been received from donors and friendly countries for these projects. During the current year 2023-24, around $913.5 million will be spent on construction and rehabilitation projects in flood-affected areas under the donors' support.

The meeting was further informed that 19 projects have been designed for flood prevention and rehabilitation of victims, including eight for Sindh, seven for Balochistan, three for Khyber Pakhtunkhwa and one for the whole of Pakistan. 

The meeting was told that 64 per cent of the money received for relief work was being spent in Sindh.

It was told that $16.2 billion was estimated for reconstruction under the 4-RF (4RF), of which $8.15 billion are being funded by the federal and provincial governments through PSDP and ADP, while the matching amount will be provided by friendly countries and international organizations.

On this occasion, UNDP Resident Coordinator Samuel Rizk said that one year had passed since the disastrous floods in Pakistan, and the presence of all partners to review the progress of the rehabilitation works was welcoming. 

He said the rehabilitation of flood-affected areas was possible only with the cooperation of all partners, and UNDP would continue to play its full role in this regard as the Secretariat of the International Partner Support Group

Federal ministers Ishaq Dar, Sardar Ayaz Sadiq, Sherry Rehman, Minister of State Hina Rabbani Khar, Special assistants Tariq Fatemi and Tariq Bajwa, representatives of UNDP, World Bank, European Union, ADB, IMF, USAID, and diplomats from America, Saudi Arabia, Turkey, China, Canada, Qatar, United Arab Emirates, Japan, South Korea, Germany, Azerbaijan, Italy and Norway, and other relevant high officials participated in the meeting.