[{"bbox": [85, 155, 323, 186], "category": "Section-header", "text": "2 RATIONALE"}, {"bbox": [85, 221, 234, 247], "category": "Section-header", "text": "2.1 Context"}, {"bbox": [97, 265, 1134, 559], "category": "Text", "text": "Pakistan is the 5th most populated country in the world, with a rapidly growing population of 231 million (2021 WB) and an annual per capita income of USD 1,505 (2021, WB). Nearly 39% (2018, MPI, UNDP) of Pakistanis live in multidimensional poverty, with the highest rates of poverty in the provinces of Khyber Pakhtunkhwa and Balochistan, and a constant 25% of the population has not had access to electricity for the last two decades. Pakistan is placed 8th among the most affected countries by extreme weather events from 2000 to 2019 (Global Climate Risk Index 2021), and it is also a major country of origin, transit and destination of refugees and migrants. Women's situation remains a challenge with the country ranked 145 out of 156 countries for economic participation and opportunity according to the Global Gender Gap Index (GGGI) 2022 and the second worst country in the world in terms of gender parity (according to the 2022 World Economic Forum's Global Gender Gap Index report). In parallel, the increasing youth bulge provides the country with a potential demographic dividend while at the same time representing a challenge in terms of employment and service provision."}, {"bbox": [97, 570, 1134, 757], "category": "Text", "text": "After the COVID-19 pandemic, which resulted in a real GDP contraction of 1.3% in 2020, Pakistan suffered in 2022 the worst floods in its history. The floods put under water 75,000 square kilometres, affected 33 million people, took the lives of 1,712, and damaged or destroyed 2.2 million houses in 94 calamity-hit districts (out of a total of 170 districts in the country). As a result, estimates indicate an increase in multidimensional poverty from 37.8% to 43.7%, meaning that an additional 1.9 million households (around 12.1 million people) will be pushed into multidimensional poverty, experiencing significantly increased deprivations in access to adequate health, sanitation, maternal care, electricity, as well as loss of assets."}, {"bbox": [97, 768, 1134, 902], "category": "Text", "text": "Floods left an adverse gender-specific impact in areas such as women's health and wellbeing, A Protection Analysis Update in October 2022² reported high rates of vulnerability among girls and women nationwide as a result of the impacts of the floods on basic services. The floods reduced available support services in a context of increased demand for them. Heightened tensions, fear and uncertainty coupled with loss of income might be leading to increased violence against women and girls."}, {"bbox": [97, 913, 1134, 1073], "category": "Text", "text": "The EU reacted immediately to the floods starting with a Declaration of Crisis approved on 17 October 2022 and covering retroactively from 1 October 2022 to 30 June 2023. In response to the dire humanitarian situation, the EU and its Member States mobilised EUR 215 million by March 2023. The EU took also a major role – in close coordination with Asian Development Bank, World Bank, and the United Nations system – in support to the Government of Pakistan to complete in a record time the Post Disaster Needs Assessment (PDNA) and the subsequent Resilient Recovery, Rehabilitation and Reconstruction Framework."}, {"bbox": [97, 1084, 1134, 1192], "category": "Text", "text": "The 4RF is the Government of Pakistan's strategic policy and prioritisation document to guide the reconstruction of the country. According to the PDNA-4RF, overall damages are estimated at EUR 13.62 billion, equivalent to 4.8% of 2022 GDP, while recovery and reconstruction needs are projected to reach at least EUR 14.62 billion, equivalent to 1.6 times the budgeted national development expenditure for 2022-2023."}, {"bbox": [97, 1203, 1134, 1364], "category": "Text", "text": "The destruction wrought by the floods is taking a heavy toll on an already struggling economy. Worsening external conditions including the rise of interest rates and global commodity prices, particularly energy, are leading to decades-high inflation and dwindling foreign exchange reserves, with an increasing risk of sovereign default. The conditions associated to the ongoing IMF USD 7 billion Extended Fund Facility programme put an additional strain on Pakistan, which faces the enormous challenge of ensuring macroeconomic stabilisation while supporting relief and economic recovery and reducing inequality."}, {"bbox": [97, 1375, 1134, 1509], "category": "Text", "text": "On the top of this economic crisis, political instability has been on the rise since the ouster in April 2022 of former Prime Minister Imran Khan through a no-confidence motion. At a crucial moment for the future of Pakistan and in the wake of new legislative elections, rehabilitation efforts are being deployed in a climate of tension between the main political parties that might affect democratic governance, resource allocation, participation of civil society and integration of minority groups."}, {"bbox": [85, 1597, 1142, 1648], "category": "Footnote", "text": "² UNHCR (2022) Pakistan Protection Analysis Update, Global Protection Cluster. Available at: https://www.globalprotectioncluster.org/sites/default/files/2022-11/pakistan_protection-analysis_oct_2022_final_0.pdf"}, {"bbox": [1038, 1682, 1144, 1706], "category": "Page-footer", "text": "Page 5 of 24"}]