Int'l economic organizations should grant debt relief to developing countries, says PM

(Karachi) Prime Minister Imran Khan has said that developing countries are saddled with billions in loans and international economic organizations should launch an initiative to give debt relief to them. He added most of the poor countries are still struggling to come out of the effects of coronavirus pandemic.

Addressing the Financing for Development Summit on the sidelines of the 75th Session of the UN General Assembly via video link on Tuesday, he 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."

He said that Pakistan initiated discussions on this matter at the United Nations and co-led the discussion group on debt vulnerability.

"I welcome the extensive menu of options by each of the six discussion groups. We must prioritise those actions that can have a significant impact and can be quickly implemented," the premier said.

He called for an extension by at least one more year in the G20 debt service suspension initiative. "The request for forbearance under this initiative should not affect the country's credit rating. This is due to force majeure, not mismanagement," he underscored.

He said that rich countries should establish a special fund of Rs500 billion for poor countries to help them rescue from economic crisis. "According to IMF, developing countries need Rs2.5 trillion to come out of the coronavirus crisis," he mentioned.

"Coronavirus outbreak had negative impacts on economies around the world. The world is still not safe from COVID-19," he said.

The PM maintained that Pakistan was able to control coronavirus outbreak by adopting effective measures, including smart lockdown. He said that the government launched relief package to facilitate the poor population and keep the wheels of economy running.

"Despite economic crisis, we announced a package of Rs8 billion for the people of the country," he stated. Imran said the whole world is waiting for COVID-19 vaccine to be developed and he hopes it will be launched soon.