ISLAMABAD: Prime Minister Imran Khan has reminded the international community of providing debt relief to the developing countries in the backdrop of the ongoing coronavirus pandemic, which has hit the economies hard.
While addressing a high-level summit on the ‘Financing for Development in the Era of COVID-19 and Beyond’ on the sidelines of the 75th session of the United Nations General Assembly, PM Imran shared different suggestions regarding debt servicing, debt suspension initiatives and vaccine.
“Controlling the virus was critical to addressing both the health and the economic emergency, he said, adding that the COVID-19 pandemic was inflicting unparalleled human suffering.
While discussing Pakistan’s strategy against the COVID-19, the prime minister said that federal government’s strategy was of ‘smart lockdowns’, which fortunately curb the spread. “Yet, we are not complacent. No one is safe until everyone is safe,” he warned.
“Despite our financial constraints we have injected over $8bn, [nearly] 3% of our GDP to protect our poor and keep the economy going,” he informed.
The premier further said, “Debt relief is one of the quickest ways to create fiscal space for developing countries. Therefore, in April, I called for a global initiative on debt relief.”
The premier also proposed extension of the G-20’s Debt Service Suspension Initiative for at least another year. “The request for forbearance under this Initiative should not affect the country’s credit rating, since this is due to force majeure, not mismanagement,” he added.
PM Imran said that the Multilateral Development Banks should participate in the Debt Suspension Initiative.
He also called for other short measures which could cover both official and private creditors, including debt swaps for health, climate and SDGs; debt buy-backs; re-profiling debt; and regional resilience funds.
“Recovery from the recession, as from the pandemic, must be inclusive and equitable. We must break the shackles of poverty and inequality,” PM Imran concluded.
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