NewsApril 16, 2020
Pakistan’s debt may be rescheduled for two years
ISLAMABAD: After publicly making commitment by Group of 20 countries to suspend debt servicing payment for poorest counties facing pandemic COVID-19 Virus, the IMF and World Bank announced to support this action. All these development might pave the way for debt rescheduling for Pakistan over the next two years as Islamabad is desperately looking for any such facility in order to create much-needed fiscal space for increasingspending on neglected health sector of the country. The unemployment as projected all multilateral lenders as well by the independent economists will increase putting pressures on budgetary side to jack up the funding for social safety nets.The G20 finance ministers and central bankers agreed to a time-bound suspension of debt service payments for the poorest countries, stated in the communique following their virtual meeting, said, all bilateral official creditors will participate in this initiative," they stated.
The initiative will "provide north of $20 billion of immediate liquidity" for poor countries to use "for their health system and support their people facing COVID-19.
In a joint statement by World Bank Group President David Malpass and IMF Managing Director Kristalina Georgieva on outcome of G20 Finance Ministers’ meeting stated, “We strongly welcome the decision of the G20 to respond to our call to allow the poorest countries of the world that request forbearance to suspend repayment of official bilateral credit on May 1. This is a powerful, fast-acting initiative that will do much to safeguard the lives and livelihoods of millions of the most vulnerable people. The World Bank Group and IMF will move quickly to respond to the G20’s request for us to support this action by working closely with these countries in ways that make the best use of this vital lifeline. We championed this debt initiative, and we're committed to taking all possible steps to support the poor.”
Courtesy www.thenews.com.pk
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