Public-Private collaboration

Our government and development sector need to continue to collaborate

There is no greater pow er in matters of social wel fare than a government. Be-- - ing in charge of national finances and legislation are reasons why a government’s efforts can bring widespread and long-term social development. However, it is no single institution’s job, and the development sector also plays a major role in bringing reform and welfare. The development sector relies on funding to fulfil and complete its humanitarian goals and projects. As a growing economy, Pakistan heavily relies on foreign funding for its development initiatives. However, since the rise of COVID-19 Pakistan is too close for comfort to a serious economic crisis. The COVID-19 pandemic has led to a global recession in several ways. First, the measures taken to contain the spread of the virus, such as lockdowns and travel restrictions, have disrupted global supply chains and reduced demand for goods and services. This has led to a decline in production and trade, which has in turn contributed to a fall in GDP. Pakistan’s fall in the gross domestic product (GDP), high unemployment, and a decline in business activity create an even greater challenge for the development sector and all the work it has to do to counter additional issues caused by a weakened economy. In addition, the uncertain economic environment has led to a decrease in business and consumer confidence, which has further exacerbated the economic downturn. It is no wonder our Forex reserves are depleting as Pakistan is not the only country suffering from worsened economic conditions. Poor economic conditions can lead to a decline in a country’s foreign exchange reserves in several ways. For example, if a country’s economy is struggling, it may have difficulty attracting foreign investment, which can lead to a decline in the demand for the country’s currency. Thus, we need government officials such as diplomats to draw foreign investments in Pakistan, be it for humanitarian or corporate purposes. This can cause the value of the currency to fall, which can reduce the value of the country’s foreign exchange reserves. In addition, we are experiencing a trade deficit, leading us to use foreign exchange reserves to pay for imports, which has also contributed to a decline in the reserves. Lack of funding has stunted and hindered the progress of the development sector’s projects and initiatives. The unusual flooding due to global warming wreaked havoc across our nation. This is an example of the need for funds in urgent humanitarian crises at the very least. Luckily, there are many different ways that the government can help nonprofits receive funding. It may provide grants or subsidies to non-profits or offer tax breaks to individuals or businesses that donate to nonprofits. The government may also partner with nonprofits to co-fund certain projects or initiatives. In addition, the government may establish programs or policies that encourage or require businesses to give a certain percentage of their profits to the development sector. Finally, governments may work with the development sector to help them apply for funding from other sources, such as private foundations or international organizations. Governments seek foreign funding for various purposes, including infrastructure development, economic growth, and poverty reduction. Foreign funding can come from a variety of sources, including international organizations such as the World Bank and the International Monetary Fund (IMF), bilateral aid from other governments, and private investment from multinational corporations. Investment in national resources must start at a community level and Pakistan can partake through programs such as Asian Development Bank’s multi-country program which emphasizes community-level adaptation and investment. Organizations such as Asian Infrastructure Investment Bank and Royal Humanitarian Foundation have invested and intend to further invest in Pakistan’s economic and climate rehabilitation given that the government is willing to engage and collaborate. In the International Conference on Climate Resilient Pakistan on 9th January 2023, Yannick Glemarec, the Executive Director of Green Climate Fund recommended Pakistan to join the impact private equity fund targeting climate action which will catalyse private sector finance to complement public sector resources in a collaborative effort to rehabilitate Pakistan’s economy, particularly through integrated flood risk and other climate risk management and infrastructure. In the Conference, Chief Minister of Sindh Murad Ali Shah when speaking of the flood-affected areas highlighted the need for an alliance with donors and the development sector to bridge the funding gap for the rehabilitation of damaged highways and motorways. Meanwhile, he also points out the efforts of the Sindh government in working to come up with an effective rehabilitation plan for flood victims. Thus, our government and development sector needs to continue to collaborate to achieve such grants in the future for the sake of our social and economic prosperity. The collective effort will bring massive improvement on a national scale which is exactly the motivating push Pakistan’s government needs to join hands with our development sector.

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