Developing countries: Pakistan demands debt relief, financing access

NEW YORK: Pakistan’s UN ambassador warned on Sunday that the ongoing US-Iran war and its resulting energy supply disruptions have created inflationary pressures for millions across developing countries, urging the global body to ensure external financing and debt relief for them.

Pakistan’s Ambassador to the UN, Asim Iftikhar Ahmad, spoke at a special meeting of the United Nations Economic and Social Council (ECOSOC) to discuss safeguarding energy and supply flows at the UN.

“And it is here that ECOSOC may exercise its charter mandate and actively engage international financial institutions and other relevant organizations to ensure a scaled-up, coordinated global response to address the needs of the most affected developing countries,” Ahmad said.

“This could include ensuring rapid access to external financing for essential imports, including through crisis response windows and emergency financing facilities, as well as debt relief,” he added.

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The ambassador noted that Pakistan is among the most severely affected countries due to the US-Iran conflict. He added that the crisis has led to abrupt fuel shortages, surging prices and inflationary pressures on millions of households across the country.

Ahmad said Islamabad’s investment in and the growth of the solar sector in Pakistan have helped mitigate the energy shock to “some extent.”

“But the impacts extend well beyond energy,” he said. “Fertilizer prices have spiked, threatening food security and remittance inflows are declining.”

The Pakistani envoy urged the world to pool its efforts to bring an end to the conflict through a peaceful settlement. “Restraint that diplomacy and dialogue must prevail,” Ahmad said.

“Pakistan has actively engaged in such efforts and remains committed to playing its constructive role in promoting dialogue and supporting all efforts aimed at achieving lasting peace.”