Trust deficit hinders disbursement of flood relief funds: FinMin

WEB DESK: Finance and Revenue Minister Muhammad Aurangzeb has acknowledged a significant trust deficit among international donors, a critical issue as Pakistan awaits the fulfilment of pledges made to aid its recovery from the catastrophic floods of 2022.

Speaking at the Climate Action for Pakistan event organised by Acumen Pakistan on Tuesday, Aurangzeb revealed that during discussions held in Geneva in the aftermath of the floods, international donors had committed approximately $9 billion in aid.

“This indicates that there is no shortage of funds and that there is understanding of the urgency of the situation. However, we have struggled to convert these pledges into actual funding,” Aurangzeb stated.

According to Business Recorder, he attributed this challenge to the need for credible and monitorable projects, noting that the trust deficit in the government was a major obstacle.

“The reality is that trust in the government is lacking, and as a government representative, I must emphasise that it is the private sector that must take a leading role in addressing this crisis,” he added.

Aurangzeb underscored the necessity for the government to ensure proper ownership and accountability of the pledged funds.

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