Floods in Pakistan: Restructuring of external debts on soft terms needed: FPCCI

KARACHI: President FPCCI Irfan Iqbal Sheikh said that all bilateral and multilateral external debts of Pakistan need immediate restructuring on soft terms as the total economic cost of unprecedented floods in Pakistan has surpassed $ 30 billion.

He reiterated his stance that despite having a population of 220 million and contribution of less than one percent in global carbon emissions, Pakistan has paid the highest price for the global warming. Now, it is the utmost responsibility of international community to swing into action and join the relief efforts without any further ado.

Sheikh highlighted that around 2.8 million people out of total 33 million flood victims are seriously ill due to various pandemics including, dengue, malaria, cholera, typhoid, serious skin infections and other water-borne and contagious diseases.

FPCCI chief proposed that the government should negotiate the restructuring of external debts with IMF, World Bank, ADB, IDB, Paris Club and friendly countries to create fiscal space for flood relief and rebuilding activities. He also extended his advisory services from the platform of FPCCI in formulating the strategies to successfully negotiate with various lenders.

He called for adopting austerity measures at every governmental level and redirecting all non-developmental budgets to the relief and rehabilitation – be it provincial or federal.

Copyright Business Recorder, 2022