Let's see what does. We'll get to these terrible floods in a
second but I just want to get to this deal with the IMF because it's been on
this negotiating table for months now. But what does it deal mean for Pakistan.
Irish Heidi shyest. And basically what it means is that
Pakistan wants your feet DAX Sri Lanka. So in Pakistan one with defaulting on
any payments it means that you know Pakistan has been able to do enough to
get into an IMF program. And what's going to happen now is that
we're going to see you know we're going to see a snowball
effect in which Arab nations are going to send in.
Our debt is committed at least nine billion dollars.
And it's expected that the World Bank and the ECB would also come with money.
So I think Pakistan that has seen its foreign exchange reserves dropped by
half in the past year. It's expected that's going to go up
again because there was a massive IMF delay which has finally gone through
with the announcement yesterday. So far say what's next for the economy.
We know that it is crucial that Pakistan implements that budget for 2023.
Yeah. So what's next is I think you know
Pakistan first need to try and secure all the financing that's required from
the Saudi's from the countries and DP World Bank and make sure all the rule
was that China has done. And Saudi Arabia has done.
Do they go through. That's the first thing.
So that you know Pakistan can make sure that it doesn't get into a payment
crunch again. And the second thing is that just as you
mentioned as well in the budget Pakistan has promised that it's going to decrease
its spending massively. So Pakistan is on a very tight leash
when it comes to spending and revenue with regards to the IMF deal.
So and it's an election year as well. So it's going to be tricky to see how
the government goes about it. Plus he did not say we were talking.
Was looking at temperatures in the province you're in and send in Jacob
about of what 142 degrees Fahrenheit. Now we're talking about these dreadful
floods which is said to be really impacting about 30 percent of the
country that this is the impact going to be.
Because its figures are being tied to around about 10 billion dollars is how
much it cost the country. And on top of that it couldn't come at a
worse time could it. Yeah.
So I mean I mean it's come out. It couldn't come at a worse time.
I can you perfectly nailed it over there because I mean Pakistan has gone through
months of trying to get its economy back on track.
And you know this climate crisis so I would call it you know gone from a
political crisis to a economic crisis to an energy crisis to now and climate
crisis. And this is basically it's going to take
a toll on Pakistan's economy in the sense that you know all the deficit
projections or any projections are for done.
They're going to be thrown out the door now.
And you know you mentioned the finance minister has mentioned that
there will be an impact as much as 10 billion dollars and that's a preliminary
impact estimate. So I mean we've got and are going to be
damaged and we're expecting you know rehabilitation works as well.
Although you know there is a flip side to this is that people have started
quoting now that in the second half of the year Pakistan will see extra
spending on construction which will boost its GDP growth.
Right. Very quickly Vaizey who is got all the
hallmarks of a climate catastrophe is the government putting it.
Yes correct. Absolutely.
So basically Pakistan has seen unprecedented rainfall.
It's the highest rainfall in three decades.
And that has basically snowballed into these floods that are happening across
the nation in different provinces different areas.
And I mean the times have basically all flooded and they've started throwing its
weight. So it is a climate crisis by any chance
and it's expected it's going to happen more regularly now.
So vaccinations wrap up for the next floods as well.