PM Imran Khan urges the world community to think of some sort of debt-off for vulnerable countries

[MenInG]

Nations belonging to the G20 group of leading economies have agreed to suspend debt payments owed to them by some of the world's poorest countries.

The agreement covers money that is due to be paid to G20 governments up to the end of 2020.

The aim is to help countries deal with the health and economic impacts of the coronavirus pandemic.

The Jubilee Debt Campaign group has described the move as a first step, but called for much more.

The UK-based charity estimates that the delay will cover $12bn (£9.6bn) of payments.

But it is only a delay and the campaign group understands that the payments will instead have to be made between 2022 and 2024, along with interest accrued in the meantime.

In all, 77 countries are due to benefit from the agreement.

The plan was provisionally agreed on Tuesday by the G7 leading developed countries, but it was conditional on support from the wider G20.

Some countries, notably China and Saudi Arabia, which are in the G20 but not the G7, are significant lenders to developing countries. The G7 wanted a contribution to the debt payment suspension from those nations.

Cancellation call

The move reflects the widely shared view that low-income countries face an especially severe challenge in coping with both the health and economic consequences of the pandemic.

The G20 has also called for private lenders to take similar steps for debts owed to them by the poorest countries. However, the G20 suggested this could be done on a voluntary basis.

The Jubilee Debt Campaign has said that is not enough. It wants to see legal changes to ensure that private creditors cannot use the courts to sue developing countries if they miss payments.

That is particularly relevant to the UK and New York, because most developing-country debt agreements use those jurisdictions' laws.

The campaigners also say that the payments should be cancelled outright rather than merely deferred.

That was in effect done earlier this week for a more limited amount of debt payments owed to the International Monetary Fund. It decided to use its own resources to make the payments due in the next six months from 25 low-income countries, mainly in Africa.

https://www.bbc.co.uk/news/amp/business-52292249?__twitter_impression=true

 

[treker747]

As per reports, Pakistan is not in initial list of 25 countries which are getting debt relief.

But Pakistan May be granted a 1.4 billion dollar loan to fight the pandemic. Another loan is going to put even in more debt, but probably need of the hour

Bet you searched for Pakistan in the list. Such obsession with Pakistan is not good for your health.

 

[MenInG]

IMF gives major debt relief to Pakistan

ISLAMABAD: Foreign Minister Shah Mehmood Qureshi on Thursday confirmed that the International Monetary Fund (IMF) has decided to give a one-year relief to Islamabad as the country grappled with coronavirus pandemic.

“Developing nations have been hit the hardest with the pandemic,” Qureshi told Geo Pakistan.

The foreign minister’s remarks follow the announcement of the G20 nations on Wednesday to give one-year debt relief to world's poorest nations as they struggle to financially cope with the coronavirus pandemic

“Prime Minister Imran Khan had appealed to IMF for debt relief for developing countries which was accepted by the Fund. IMF has announced it would give one-year relief to 70 developing nations including Pakistan,” Qureshi said.

The foreign minister said the relief by the Washington-based organisation would be for one year and is expected to be given from May 1.

The prime minister on Sunday had appealed for a “Global Initiative on Debt Relief", stating that the coronavirus pandemic had posed unprecedented health and economic challenges.

The premier had appealed to the international community that the global pandemic could be contained with a strong, coordinated and well-crafted global response.

Earlier, the IMF and World Bank had announced they would back the Group of 20 nations’ decision to give one-year debt relief to world's poorest nations as they struggle to financially cope with the coronavirus pandemic.

These developments might pave the way for debt rescheduling for Pakistan for the next two years as Islamabad desperately looks for any such facility to create much-needed fiscal space for increasing spending on neglected health sector of the country.

The unemployment as projected by all the multilateral lenders as well as by the independent economists will increase pressure on the budgetary side to jack up funding for social safety nets.

The G20 finance ministers and central bankers endorsed "a time-bound suspension of debt service payments for the poorest countries," and in the communique following their virtual meeting, said, "All bilateral official creditors will participate in this initiative."

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 issued by World Bank Group President David Malpass and IMF Managing Director Kristalina Georgieva said, “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.”

The leaders of the IMF and World Bank hailed the announcement, calling it "a powerful, fast-acting initiative that will do much to safeguard the lives and livelihoods of millions of the most vulnerable people."

The Washington-based lenders have rushed to roll out emergency financing and have received requests for aid from 100 countries.

The G20 called on private creditors, working through the Institute of International Finance, to participate in the initiative which extends to the world's 76 poorest countries.

The IMF has called the economic crisis the "Great Lockdown," warning it will slash $9 trillion off of global growth as the world economy contracts by three% this year, the most severe downturn since the Great Depression in the 1930s.

The situation could get much worse if the pandemic lingers into the second half of the year or resurges.

The G20 officials also reiterated their commitment to deploy "available tools" to deal with the health and economic crisis caused by COVID-19.

"Our efforts must continue and be amplified," the communique said.

The IMF estimates the 20 governments already has committed about $7 trillion towards combating the virus and providing economic lifelines to households and companies struggling to weather the crisis.

But more will be needed to restart the global economies once the pandemic has passed.

https://www.geo.tv/latest/283130-pakistans-debt-may-be-rescheduled-for-two-years

 

[MenInG]

Foreign Minister Shah Mehmood Qureshi on Thursday said Prime Minister Imran Khan's initiative for debt relief has benefited Pakistan as well as the developing world that is grappling to deal with the effects of the pandemic.

Addressing a press conference in Islamabad, the foreign minister explained that the developing world had two major problems.

"The developing world lacks fiscal space and a proper health system. Therefore, the most appropriate response that other countries can give at the moment is granting debt relief," he said.

On April 12, Imran had appealed to the leaders of rich countries, the UN secretary general and heads of financial institutions to give debt relief to developing countries such as Pakistan so that they could combat Covid-19.

In a video message to the international community broadcast by TV channels, the prime minister had highlighted the difficulties being faced by developing countries — particularly those burdened by heavy debt — in handling the situation.


Following the prime minister's appeal, G20 announced that Pakistan was included in a group of 72 countries eligible for debt relief on all principal and interest payments to official bilateral creditors.

According to the details, the suspension period for debt relief will start from May 1 and continue till Dec 1, 2020.

All debt service falling due in this period will be packaged into a new loan on which the payments will not start until June 2022. Then it will be paid over the subsequent three years. A standardised term sheet has been made for all the payments clubbed under the relief plan.

In today's press conference, Qureshi lauded the premier for taking the initiative despite the risks associated with it, adding that a clearer picture regarding the debt relief will emerge after more details are released.

He went on to say that this is the fourth global initiative that Imran had spearheaded during his short term as prime minister.

"His drive against climate change on global forums, his campaign against eliminating Islamophobia, action against corrupt and illicit financial flows, and now his initiative against debt relief.

"In less than two years, the prime minister has taken on four global causes and the Foreign Office has played its part in helping realise them," he said.

"Adviser to the Prime Minister on Finance Dr Abdul Hafeez Sheikh has said that we need to wait in order to gauge the impact of the debt relief. However, I can say this that the impact will be significant," he said.

Stranded Pakistanis

Commenting on the repatriation of Pakistani nationals stranded abroad, the foreign minister said the Foreign Office was working round the clock on the issue.

He explained that the FO had established a crisis management centre which is working 24/7. "Our biggest challenge in repatriating nationals is our capacity for testing and quarantining."

He said that in the first week roughly 2,000 nationals were being brought back.

"However, from April 20, we will increase our capacity to 7,000. We had to convince the provinces to allow their airports to open, and we had to ensure testing and quarantine facilities."

The foreign minister added that he was aware of the difficulties being faced by nationals abroad, some of whom were unemployed while the visas of others had expired.

"We have told stranded nationals to get in touch with the embassies," he said, adding that the FO was working on the matter constantly.

Questioned about the United States' decision to withdraw funding for the World Health Organisation, Qureshi said: "It is my personal view, but I think they should review it.

"This is a time for us to unite and join our heads together. The WHO has a lot of responsibilities at the moment. Cutting off their funding will only add to their burden," he said.

PM listens to Murad

Commenting on the back and forth between the Centre and the Sindh government, Qureshi said the first person PM Imran listened to during meetings of the National Coordination Committee (NCC) was Sindh Chief Minister Murad Ali Shah.

He said the federal government did not want to "bicker", adding that he believed the Sindh government was working with clear intentions.

https://www.dawn.com/news/1549701/i...loping-world-during-time-of-crisis-fm-qureshi

 

[MenInG]

Prime Minister Imran Khan on Thursday appreciated the debt relief measures by G20 countries, the International Monetary Fund (IMF) and the World Bank for developing countries, including Pakistan.

The premier lauded the debt relief measures after Finance Advisor Dr Abdul Hafeez Sheikh called him and informed him about the planned approval of an additional $1.4 billion concessionary financing from IMF to deal with the economic impact of coronavirus.

The advisor also updated the premier about the progress on various components of the Economic Stimulus Package announced by the government.

Meanwhile, Foreign Minister Shah Mehmood Qureshi said the decision by G20 countries to give debt relief to developing countries will have "substantial impact” on Pakistan, allowing the country a much needed "fiscal space” to focus on the downtrodden against the backdrop of Covid-19.

He told reporters said the initial debt relief was for one year but added the period could be extended since the situation was still evolving.

Asked to share the benefits for Pakistan, the foreign minister said Pakistan annually spent $10 to $12 billion on debt servicing. He said while the details were being worked out by the finance ministry, the impact of debt relief for Pakistan would be ‘substantial’.

Since the outbreak of Covid-19, Prime Minister Khan has been seeking debt relief for developing and poor countries. On April 12, he formally launched an appeal urging the international financial institutions and developed world seeking debt relief.

Qureshi said prior to the prime minister’s appeal, the foreign office in consultations with the relevant ministries prepared a comprehensive plan for the debt relief.

For this purpose, he said he wrote letters and spoke to 30 foreign ministers over the past few weeks, seeking their help for Prime Minister Imran’s global initiative for debt relief.

The foreign minister said the decision of G-20 was historic and would give major relief to the developing countries.
Qureshi credited the debt relief for developing countries to the prime minister, who was one of the first world leaders calling for such reprieve for developing countries.

To a question, Qureshi urged President Donald Trump to review his decision of suspending funds to the World Health Organisation (WHO). He said this was the time all countries should be united against the fight against coronavirus.

He said the premier’s debt relief initiative has benefited Pakistan as well as the developing world that is grappling to deal with the effects of the pandemic.

https://www.gulftoday.ae/news/2020/...n-g20-debt-relief-plan-imran-appreciates-move

 

[Abdullah719]

<blockquote class="twitter-tweet" data-lang="en"><p lang="de" dir="ltr">“The telecon between <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> & <a href="https://twitter.com/angelamerkelcdu?ref_src=twsrc%5Etfw">@AngelaMerkelCDU</a> did contribute in G20’s decision to provide <a href="https://twitter.com/hashtag/DebtRelief?src=hash&ref_src=twsrc%5Etfw">#DebtRelief</a>, during <a href="https://twitter.com/hashtag/coronavirus?src=hash&ref_src=twsrc%5Etfw">#coronavirus</a> <a href="https://twitter.com/hashtag/pandemic?src=hash&ref_src=twsrc%5Etfw">#pandemic</a>, to weaker economies”, said <a href="https://twitter.com/hashtag/German?src=hash&ref_src=twsrc%5Etfw">#German</a> Ambassador H.E Bernhard Schlagheck during <a href="https://twitter.com/hashtag/SDPIPolicyDialogue_COVID19?src=hash&ref_src=twsrc%5Etfw">#SDPIPolicyDialogue_COVID19</a><br>Danke für den Beitritt zu uns. <a href="https://t.co/SVYmhXXB3K">pic.twitter.com/SVYmhXXB3K</a></p>— Abid Qaiyum Suleri (@Abidsuleri) <a href="https://twitter.com/Abidsuleri/status/1251100452181155841?ref_src=twsrc%5Etfw">April 17, 2020</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[Bewal Express]

<blockquote class="twitter-tweet" data-lang="en"><p lang="de" dir="ltr">“The telecon between <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> & <a href="https://twitter.com/angelamerkelcdu?ref_src=twsrc%5Etfw">@AngelaMerkelCDU</a> did contribute in G20’s decision to provide <a href="https://twitter.com/hashtag/DebtRelief?src=hash&ref_src=twsrc%5Etfw">#DebtRelief</a>, during <a href="https://twitter.com/hashtag/coronavirus?src=hash&ref_src=twsrc%5Etfw">#coronavirus</a> <a href="https://twitter.com/hashtag/pandemic?src=hash&ref_src=twsrc%5Etfw">#pandemic</a>, to weaker economies”, said <a href="https://twitter.com/hashtag/German?src=hash&ref_src=twsrc%5Etfw">#German</a> Ambassador H.E Bernhard Schlagheck during <a href="https://twitter.com/hashtag/SDPIPolicyDialogue_COVID19?src=hash&ref_src=twsrc%5Etfw">#SDPIPolicyDialogue_COVID19</a><br>Danke für den Beitritt zu uns. <a href="https://t.co/SVYmhXXB3K">pic.twitter.com/SVYmhXXB3K</a></p>— Abid Qaiyum Suleri (@Abidsuleri) <a href="https://twitter.com/Abidsuleri/status/1251100452181155841?ref_src=twsrc%5Etfw">April 17, 2020</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Well done IK, your leadership has helped PK in this critical hour. Just imagine if the crooked NS and AZ asked Mrs Merkel when she knows they have stolen billions from a poor country.

 

[Abdullah719]

Govt to launch $595m funding appeal

Spoiler

ISLAMABAD: Pakistan is launching a $595 million funding appeal for meeting its needs for halting the spread of the coronavirus and recovering from its impact.

The appeal will be launched at a virtual event on Thursday. Besides Foreign Minister Shah Mahmood Qureshi and other senior Pakistani officials, the meeting will also be attended by World Health Organisa*tion director general Dr Tedros Adhanom Ghebreyesus, the Asian Development Bank’s vice president and the World Bank’s managing director.

“The Government of Pakistan is launching an initial US$ 595 million coordinated multi-sectoral Prepared*ness and Response Plan to combat Covid-19 in a bid to suppress and mitigate the spread of Coronavirus,” a statement from the Foreign Office said.

It further said the donors would be asked “to fund and participate in combating the immediate and long-term impacts of the Covid-19 crisis on health sector”.

FO spokesperson Aisha Farooqui, talking to Dawn, said a plan for dealing with the Covid-19 pandemic was being presented to the United Nations, multilateral donors and other countries. The plan, she said, identified funding gaps for dealing with the challenge.

She said it is expected that countries and donor organisations would come forward with pledges.

The appeal has been developed jointly by the National Disaster Management Authority and other government agencies involved in the fight against Covid-19.

Pakistan has earlier got $1.4 billion under IMF’s Rapid Financing Instrument for addressing the economic impact of Covid-19. The World Bank separately provided $238m loan for strengthening the country’s national healthcare systems, mitigating socioeconomic disruptions and procuring urgently needed medical equipment and supplies.

The Asian Development Bank had, meanwhile, chipped in with a $2.5m grant for funding immediate purchase of emergency medical supplies, personal protective equipment, diagnostic and laboratory supplies and other equipment.

At the bilateral level, contributions have been made by the United States, Japan and the United Kingdom.

https://www.dawn.com/news/1551252/govt-to-launch-595m-funding-appeal

 

[MenInG]

ISLAMABAD: The Asian Development Bank (ADB) has agreed to provide about $1.7 billion by the end of calendar year — almost half of it by June — to help Pakistan absorb the fiscal shocks from the Coronavirus pandemic.

Ministry of Economic Affairs (MEA) on Friday said in a statement that the ADB has promised $1.7bn support to Pakistan for Covid-19 response. This will include a budgetary support of $800 million to be approved by June this year and another $900m by December.

The statement said the ADB would extend budgetary support at a special concessionary rate. The decision was reached following a virtual meeting between Minister for Economic Affairs Makhdoom Khusro Bakhtiyar and ADB President Masatsugu Asakawa.

In a separate statement, the ADB said that MEA Bakhtiyar and ADB chief “discussed how [the bank] can scale up its support for the government’s response to the novel coronavirus disease pandemic” but did not confirm the loan programmes. Another official explained that the ADB’s formal announcement would come out shortly after necessary board approval.

“ADB is firmly committed to helping Pakistan fight this pandemic, reduce the impact on the poorest and most vulnerable groups across the country, and protect the economy”, said Mr Asakawa adding the outbreak of coronavirus in Pakistan had already led to significant loss of life and livelihoods, and continued to pose serious health and economic risks.

The ADB said it was “preparing an emergency assistance package to provide immediate and flexible financing to help Pakistan combat the COVID-19 outbreak, revitalise economic activity for affected communities, and support the basic needs of vulnerable and poor segments of society”. The ADB is also working to mobilise additional grant funding for Pakistan and specific measures to support the private sector, it added.

ADB Chief Asakawa commended government for its swift response to mitigate the impact of coronavirus including the economic stimulus package to support families and businesses, and timely policy measures, including lowering interest rates and announcing new refinancing facilities.

Bakhtiyar also expressed his appreciation for the ADB’s timely and continued support. On April 9, the ADB repurposed $50m from the Pakistan’s National Disaster Risk Management Fund to procure medical equipment to strengthen hospitals, diagnostic laboratories, isolation units, and other medical facilities in the country.

These supplies have begun to arrive in Pakistan and are being delivered to frontline health workers, while the bank is working intensively to deliver further supplies under this assistance.

Last month, the ADB also approved $2.5m in immediate response grant funding to help Pakistan purchase personal protective equipment and other emergency medical supplies.

These are part of the ADB’s expanded support package of $20bn announced on April 13 to address the immediate needs of its developing member countries, including Pakistan, as they respond to the pandemic.

The bank also approved measures to streamline its operations for quicker and more flexible delivery of assistance.

Published in Dawn, April 25th, 2020

https://www.dawn.com/news/1552075/adb-to-lend-pakistan-17bn-for-pandemic-shock

 

[Abdullah719]

PM advocates global debt relief initiative for developing countries

ISLAMABAD: Prime Minister Imran Khan on Wednesday called for a global initiative on debt relief for developing countries, including Pakistan, so that they could combat the novel coronavirus in a better way.

During a telephonic conversation with Bill Gates, co-chair of the Bill & Melinda Gates Foundation, PM Khan apprised him how his government was fighting on two fronts simultaneously — combating Covid-19 and saving people from hunger caused by the countrywide lockdown.

According to an official press release, Prime Minister Khan discussed with Bill Gates the latest developments surrounding the Covid-19 response. He appreciated the support provided by the Gates Foundation and other international partners during this unprecedented crisis and emphasised on the continued urgency of the situation.

Spoiler

Pakistan, he said, was making all-out efforts to combat the Covid-19 pandemic with a robust and coordinated response. “Pakistan is facing a dual challenge of overcoming the pandemic and saving people, particularly the most vulnerable segments of the population, from hunger due to lockdown,” he added.

The prime minister said his government had given a $8 billion package to support people and businesses affected by the lockdown in the country due to coronavirus.

Imran speaks to Bill Gates, chairs meeting to review Covid-19 situation, cash distribution programme

He said the steps taken by the government had helped contain the spread of coronavirus in Pakistan and urged the world to announce a debt relief package for developing countries so that they could fight the deadly virus in a better way. “The prime minister called for ‘Global Initiative on Debt Relief’ for developing countries,” said the press release.

Mr Gates said Covid-19 was a threat to the world and commended Pakistan’s efforts to protect the lives and livelihood of vulnerable people.

The prime minister and Mr Gates also discussed their shared priority of polio eradication. They discussed the important role that Pakistan’s polio staff and infrastructure are playing in the fight against Covid-19.

The polio teams are supporting the training of frontline health workers on Covid-19. In the context of the pandemic, they agreed that routine immunisation programmes for children, especially polio vaccination, could not be ignored, and stressed the need for capacity enhancement of the National Institute of Health.

Cash distribution programme

The prime minister presided over a meeting held to review the present situation and impact of coronavirus on the country’s economy and low-income groups of society, as well as the Ehsaas cash distribution programme.

The meeting was informed that under the programme, the government had so far distributed Rs80.5 billion among 6.6 million families as Rs12,000 four-month stipend. A total of 12 million families would be benefited and R144bn had been allocated for the programme.

The prime minister said the cabinet had approved a Rs75bn relief package for labourers and daily wage earners badly affected by the countrywide lockdown. He directed his special assistant on social protection Sania Nishtar to devise a comprehensive mechanism for providing relief to the labourers.

PM Khan also issued directives for devising anti-coronavirus strategies considering the needs of all segments of society, particularly the poor, ridding the country of previous tendency of pro-rich policies.

He reiterated that amid the pandemic situation in the country the government had to maintain a balance between prevention against coronavirus and sustainability of economic process.

The prime minister told the meeting that the government had finalised a policy regarding allowing Taraweeh prayers at mosques after consultation with ulema, who had also taken responsibility of its true implementation. He said maintaining social distancing for protection against coronavirus was everyone’s responsibility.

https://www.dawn.com/news/1553371/p...bt-relief-initiative-for-developing-countries

 

[Abdullah719]

Egypt backs Pakistan’s debt relief initiative for developing countries

Spoiler

Prime Minister Imran Khan held a telephonic conversation with Egyptian President Abdel Fatteh Sisi on Thursday and discussed issues arising out of the Covid-19 pandemic.

According to an official statement, the premier “fondly” recalled his earlier interaction with the Egyptian president on the sidelines of the Organisation of Islamic Cooperation (OIC) Summit in Makkah and the UN General Assembly session in New York last year.

PM Imran conveyed Pakistan’s solidarity with the government and people of Egypt and commended their effective measures to control the spread of Covid-19.

“The wide-ranging discussion between the two leaders focused on their respective national approaches to managing Covid-19 and Prime Minister Imran Khan’s call to launch a ‘Global Initiative on Debt Relief’ for developing countries,” the communique said.

Premier Imran congratulated President Sisi for pursuing an effective national strategy against coronavirus and also highlighted the key elements of Pakistan’s approach aimed at saving lives from the scourge of the virus and protecting the most vulnerable segments of population from acute economic distress.

On the issue of debt, the prime minister underscored that more measures are needed to reboot the developing countries’ economies besides debt relief which “will help free up resources to manage this unprecedented global health and economic crisis”.

“President Sisi expressed support for the Prime Minister’s Debt Relief Initiative,” according to the statement.

The prime minister stressed the importance of working together to evolve a comprehensive plan to turn the crisis generated by global pandemic into an opportunity for economic regeneration.

The two leaders reaffirmed their commitment to further solidify the close fraternal ties between Islamabad and Cairo, the official communique said. “Prime Minister Imran Khan reiterated his invitation to President Sisi to visit Pakistan at the earliest convenience.”

https://tribune.com.pk/story/221083...-debt-relief-initiative-developing-countries/

 

[the Great Khan]

theyll never let Muslim countries off the hook..especially Pakistan..

 

[Abdullah719]

Some debts need to be written off: IMF

WASHINGTON: Some debts were not sustainable and needed to be restructured, re-profiled or written off, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said in an interview recorded earlier this week.

Spoiler

In this interview to ITV News, Ms Georgieva also urged governments to spend more money on health workers to protect the most vulnerable.

“There is a possibility that in some cases debt simply is not sustainable and therefore some action has to be taken either to re-profile or restructure or in some cases write off this debt,” she said.

Although G20 countries have promised some debt relief, a transcript of the interview, released by the IMF headquarters in Washington, indicated that Ms Georgieva believed the crisis required them to go further.

Last month, Prime Minister Imran Khan appealed to the leaders of rich countries, the UN secretary general and heads of financial institutions to give debt relief to developing countries like Pakistan so that they could combat the deadly Covid-19 in a better way.

The prime minister argued that heavy debt burdens were preventing some countries from focusing on the real challenge of saving their people from the deadly pandemic and hunger that extended lockdowns would trigger.

The IMF chief, while acknowledging the need to restructuring loans, also said the first priority was to combat the disease that has already killed hundreds of thousands and infected several millions across the globe.

“The only thing we ask countries is please spend more money for your doctors and nurses — and please, please use the money to protect the most vulnerable,” she said.

The interviewer, Julie Etchingham, noted that loans usually came with conditions — such as tightening public spending — that were difficult to implement during the Covid-19 crisis.

Ms Georgieva said she was aware of the risks ahead for the IMF. “We are looking to the transparency and accountability in countries. They themselves are coming up with commitments to audit the use of the funds we provide, but there are no strings attached,” she said.

The IMF chief said that more than 100 countries had reached out to them for help to fight the pandemic and 50+ requests were swiftly approved for a total of about $18 billion.

Asked to assess the scale of the crisis facing the global economy, Ms Georgieva did not mince her words. “It is the worst crisis since the Great Depression. But it is more than that because it is a combination of a health crisis and an economic shock,” she said. “And it is truly global.”

The IMF now has about $1 trillion dollars lending capacity — four times more than in the last financial crisis.

The IMF approved $1.386 billion of assistance for Pakistan under the Rapid Financing Instrument to address the economic impact of the Covid-19 shock.

https://www.dawn.com/news/1555712/some-debts-need-to-be-written-off-imf

 

[Abdullah719]

Over 300 lawmakers worldwide urge IMF, WB to cancel poor countries’ debt

WASHINGTON: Over 300 lawmakers from around the world on Wednesday urged the International Monetary Fund and World Bank to cancel the debt of the poorest countries in response to the coronavirus pandemic, and to boost funding to avert a global economic meltdown.

The appeal came in a letter delivered to the heads of the World Bank and the IMF, as well as US President Donald Trump and other world leaders amid growing concern that the pandemic will devastate developing countries and emerging economies. They asked the institutions to respond in 15 days.Widespread shutdowns aimed at containing the virus are taking a huge toll on the global economy, and especially poor countries with weak health systems, high debt levels and few resources to manage the dual health and economic crises.

Spoiler

IMF Managing Director Kristalina Georgieva on Tuesday said the Fund was “very likely” to revise downward its forecast that global output would shrink by 3pc in 2020, and said developing countries would need more than $2.5 trillion in financing to weather the storm.

Former US presidential candidate Senator Bernie Sanders, who led the initiative along with Representative Ilhan Omar, a Democrat from Minnesota, said poor countries needed every cent to care for their people, instead of servicing the “unsustainable debts” they owe to the large international financial institutions.

Cancelling their debt was “the very least that the World Bank, IMF and other international financial institutions should do to prevent an unimaginable increase in poverty, hunger, and disease that threatens hundreds of millions of people,” he said.

The lawmakers welcomed a move by the IMF to cover the debt service payments of 25 of the poorest countries for six months, but said further efforts were needed.

The World Bank has said it will look at ways to expand its support for the poorest countries, but warned waiving debt payments could harm its credit rating and undercut its ability to provide low-cost funding to members.

In the letter, parliamentarians from two dozen countries on all six continents, said debt service obligations of the poorest countries should be cancelled outright, instead of simply suspended, as agreed by the Group of 20 countries in April.

Failing to do so meant those countries would not be able to prioritize spending needed to fight the virus, which in turn could lead to continued disruption to global supply chains and financial markets, they wrote.

The lawmakers also urged the IMF’s Georgieva and World Bank President David Malpass to support creation of trillions of dollars of new Special Drawing Rights, the currency of the IMF.

“An issuance of SDRs on the order of trillions of dollars will be required to avert major increases in poverty, hunger and disease,” wrote the lawmakers, who span a wide range of political affiliations and include former heads of state.

An SDR allocation is akin to a central bank “printing” new money and does not trigger big costs, but has been opposed by the United States, the IMF’s largest shareholder.

Omar said the United States should lead the effort to provide relief to the most vulnerable nations.

“All our destinies are linked. If we turn a blind eye to the suffering of people abroad, it will eventually harm us,” Omar said.

https://www.dawn.com/news/1556955/o...ide-urge-imf-wb-to-cancel-poor-countries-debt

 

[the Great Khan]

Over 300 lawmakers worldwide urge IMF, WB to cancel poor countries’ debt

WASHINGTON: Over 300 lawmakers from around the world on Wednesday urged the International Monetary Fund and World Bank to cancel the debt of the poorest countries in response to the coronavirus pandemic, and to boost funding to avert a global economic meltdown.

The appeal came in a letter delivered to the heads of the World Bank and the IMF, as well as US President Donald Trump and other world leaders amid growing concern that the pandemic will devastate developing countries and emerging economies. They asked the institutions to respond in 15 days.Widespread shutdowns aimed at containing the virus are taking a huge toll on the global economy, and especially poor countries with weak health systems, high debt levels and few resources to manage the dual health and economic crises.

Spoiler

IMF Managing Director Kristalina Georgieva on Tuesday said the Fund was “very likely” to revise downward its forecast that global output would shrink by 3pc in 2020, and said developing countries would need more than $2.5 trillion in financing to weather the storm.

Former US presidential candidate Senator Bernie Sanders, who led the initiative along with Representative Ilhan Omar, a Democrat from Minnesota, said poor countries needed every cent to care for their people, instead of servicing the “unsustainable debts” they owe to the large international financial institutions.

Cancelling their debt was “the very least that the World Bank, IMF and other international financial institutions should do to prevent an unimaginable increase in poverty, hunger, and disease that threatens hundreds of millions of people,” he said.

The lawmakers welcomed a move by the IMF to cover the debt service payments of 25 of the poorest countries for six months, but said further efforts were needed.

The World Bank has said it will look at ways to expand its support for the poorest countries, but warned waiving debt payments could harm its credit rating and undercut its ability to provide low-cost funding to members.

In the letter, parliamentarians from two dozen countries on all six continents, said debt service obligations of the poorest countries should be cancelled outright, instead of simply suspended, as agreed by the Group of 20 countries in April.

Failing to do so meant those countries would not be able to prioritize spending needed to fight the virus, which in turn could lead to continued disruption to global supply chains and financial markets, they wrote.

The lawmakers also urged the IMF’s Georgieva and World Bank President David Malpass to support creation of trillions of dollars of new Special Drawing Rights, the currency of the IMF.

“An issuance of SDRs on the order of trillions of dollars will be required to avert major increases in poverty, hunger and disease,” wrote the lawmakers, who span a wide range of political affiliations and include former heads of state.

An SDR allocation is akin to a central bank “printing” new money and does not trigger big costs, but has been opposed by the United States, the IMF’s largest shareholder.

Omar said the United States should lead the effort to provide relief to the most vulnerable nations.

“All our destinies are linked. If we turn a blind eye to the suffering of people abroad, it will eventually harm us,” Omar said.

https://www.dawn.com/news/1556955/o...ide-urge-imf-wb-to-cancel-poor-countries-debt

they will never do this. For them the more devastation the easier to exploit these countries further.

 

[the Great Khan]

the countries most indebted need to join together and form a strategy to cancel their payments or enmasse not pay anything..

 

[MenInG]

'Real leaders beg for the sake of the country,' PTI's Shahzad Waseem responds to opposition

PTI Senator Dr Shahzad Waseem while speaking in the upper house said real leaders "beg" for financial relief for the sake of their country if they have to, such as during a public health crisis.

Referring to the opposition, he said: "They taunted the prime minister for begging. You know who else begged? Sir Syed [Ahmad Khan].

"Real leaders beg for the sake of the country, and others beg to fill their pockets."

 

[Abdullah719]

Consultation on PM Imran's debt relief initiative begins at the UN

The first round of consultations on Prime Minister Imran Khan’s initiative for global debt relief has begun at the United Nations on Tuesday.

Ambassadors from over 22 countries discussed the matter at their virtual meeting in New York.

Senior officials of the United Nations, International Monetary Fund, World Bank and the UN Conference on Trade and Development also participated in the meeting.

Spoiler

In his opening remarks, read by Pakistan’s UN Ambassador Munir Akram, Foreign Minister Shah Mahmood Qureshi emphasised the need for addressing the debt distress of many developing countries, which could eventually become a debt crisis.

The foreign minister expressed hope that the informal consultations would lead to an agreement.

President of the United Nations General Assembly (UNGA) Tijjani Muhammad-Bande welcomed the premier’s initiative and called for quickly moving on debt and concessional finance to support the most vulnerable people around the world.

UN Deputy Secretary-General Amina Mohammed maintained the need for the international community to address debt challenges faced by many developing countries in a sustainable manner.

During the meeting, several proposals for addressing the issue were discussed.

In April, PM Imran appealed to the international community to launch a debt relief initiative to help the developing countries cope with the crisis arising out of Covid-19 pandemic.

UN Secretary-General Antonio Guterres had also supported PM Imran’s demand for debt relief to developing countries, saying such a measure must be an “important part” of the response to the coronavirus pandemic.

Earlier, the Foreign Office said the premier’s call for relief was widely welcomed at the United Nations including by the presidents of the general assembly and the economic and social councils.

https://tribune.com.pk/story/2224707/3-consultation-pm-imrans-debt-relief-initiative-begins-un/

 

[Rajdeep]

US urges China to waive off Pakistan’s debt amid Covid-19 crisis

ISLAMABAD: The United States on Wednesday urged China either to wave off or renegotiate what it called “unsustainable and unfair” debt of Pakistan as it once again raised serious questions about the lack of transparency in the multibillion-dollar China-Pakistan Economic Corridor (CPEC).

“At a time of crisis like Covid-19, it is really incumbent on China to take steps to alleviate the burden that this predatory, unsustainable and unfair lending is going to cause to Pakistan,” said Alice Wells, the outgoing US Assistant Secretary of State for South and Central Asia.

“We hope China will join in either waving off debt or renegotiating these loans and creating a fair and transparent deal for Pakistani people,” Ambassador Wells said while addressing a farewell news briefing through a video link attended by journalists from South and Central Asia.

This was not the first time the US and Wells in particular publically questioned the viability of CPEC. Wells in the past also expressed similar views, declaring CPEC detrimental to Pakistan’s economy.

https://tribune.com.pk/story/222577...ff-pakistans-debt-amid-covid-19-crisis/?amp=1

 

[Napa]

US urges China to waive off Pakistan’s debt amid Covid-19 crisis

ISLAMABAD: The United States on Wednesday urged China either to wave off or renegotiate what it called “unsustainable and unfair” debt of Pakistan as it once again raised serious questions about the lack of transparency in the multibillion-dollar China-Pakistan Economic Corridor (CPEC).

“At a time of crisis like Covid-19, it is really incumbent on China to take steps to alleviate the burden that this predatory, unsustainable and unfair lending is going to cause to Pakistan,” said Alice Wells, the outgoing US Assistant Secretary of State for South and Central Asia.

“We hope China will join in either waving off debt or renegotiating these loans and creating a fair and transparent deal for Pakistani people,” Ambassador Wells said while addressing a farewell news briefing through a video link attended by journalists from South and Central Asia.

This was not the first time the US and Wells in particular publically questioned the viability of CPEC. Wells in the past also expressed similar views, declaring CPEC detrimental to Pakistan’s economy.

https://tribune.com.pk/story/222577...ff-pakistans-debt-amid-covid-19-crisis/?amp=1

CEPC was a huge purchase of Chinese infrastructure at inflated prices by Pakistan. China didn't even try to develop Pakistan's economy by training Pakistanis to be employed in the projects, but rather imported Chinese labor into Pakistan to do much of the work. That was absurd given that Pakistanis have more ability than needed to do such work.

When Pakistan was about to default and asked the IMF and WB for money, the apprehension was expressed that the money would be used by Pakistan to pay its Chinese debt.

Now that has come to pass. China drives a hard bargain when its debt is not paid, as seen by its grabbing the Sri Lankan port. This will probably end with the Chinese taking over some major Pakistani assets. They already seem to own many power plants. I hope that more money of US taxpayers like me doesn't end up in China's pocket via the WB and IMF future bailouts of Pakistan.

 

[MenInG]

ISLAMABAD: In a fast-moving process, the executive board of the World Bank has approved a $500 million loan to help Pakistan improve health and education facilities, generate jobs for women and strengthen social safety nets under its efforts to fight the impact of the Covid-19 pandemic.

The loan is set for quick disbursement and would be available to Pakistan well before the current fiscal year ends on June 30. The project will be financed by the International Development Association — a concessional window of the World Bank — and will have a 30-year maturity with a five-year grace period.

The concept papers of the project were cleared by the Central Development Working Party (CDWP) at a meeting presided over by the deputy chairman of the Planning Commission, Dr Jahanzeb Khan, early this week at the request of the finance ministry.

Pakistan has to meet a financing gap of $2 billion during the current fiscal, according to the International Monetary Fund estimates. Therefore, the finance division had presented seven concept papers for different loans from the World Bank and the Asian Development Bank for a total loan of about $1.8bn. All the papers were cleared by the CDWP.

The project “Securing Human Investments to Foster Transformation (SHIFT)” will contribute to improvements in the quality of civil registration and vital statistics, birth and death certification rates and the ability of the country to better plan for human capital accumulation.

Country will receive amount before current fiscal ends on June 30

The project seeks to implement in the country universal health coverage policy to improve health outcomes, increase sustainability of immunisation, better quality of education, boost engagement and recognition of women’s participation in economic activities, develop safety net programmes, expand education and nutrition initiatives and provide cash transfers to the poor and the vulnerable to cope with the potential negative impact of the fiscal adjustment and of the Covid-19 pandemic.

The document prepared for the project says macroeconomic risk in Pakistan is high as the impact of Covid-19 will weaken ongoing stabilisation efforts and medium-term structural reforms and add additional pandemic-related shocks.

In a statement, the World Bank said the SHIFT programme would support policy reforms to help Pakistan’s Covid-19 emergency response and protect human capital investments. It will support greater coordination between the provinces and the federal authorities to immunise millions of children and reduce their risks of contracting polio and other diseases. The SHIFT also improves targeted safety net programmes that will benefit 12m people impacted by the Covid-19 crisis, both at the federal and provincial levels.

“The global Covid-19 pandemic is impacting day-to-day life in Pakistan — not solely from economic disruptions but also additional stress on public services that jeopardise human capital accumulation,” said Illango Patchamuthu, World Bank’s country director for Pakistan. “This programme underscores the criticality of universal healthcare and social protection services that are durable to exogenous shocks such as Pakistan is facing now.”

The SHIFT supports three policy reforms aimed at building Pakistan’s workforce and improving social safety-net programmes, including to increase the quality of essential services, particularly primary healthcare and equitable access to basic education, and civil registration and vital statistics, recognise women’s economic contributions and support their participation in the labour force through appropriate working conditions, improve efficiencies in safety nets for Covid-19 response and strengthen effectiveness of national and federal safety net programmes in short- to medium term.

“Pakistan’s ability to mitigate socio-economic impacts of Covid-19 depends on how quickly and efficiently social safety net programmes can reach those most in need,” said Cristina Panasco Santos, task team leader for the programme. “This programme supports alignment efforts between Ehsaas and provincial safety net programmes to ensure that the most vulnerable and affected populations are identified and receive assistance.”

Besides the SHIFT loan, the CDWP has cleared six other project concept papers to avail about a total of $1.7bn worth of foreign loans. Of these, two papers would lead to preparation of projects to seek about $288m credit from the World Bank, including $100m for Solid Waste Emergency Efficiency Programme and $188m for Hydromet and Ecosystem Restoration Services project.

One of the concept papers pertains to $9m Korean assistance to set up a nutrition centre to improve child and community nutrition. Others include $75m project for pension reforms, $300m for financial markets development and $500m for resilient institutions for sustainable economy.

Pakistan’s total public debt to GDP ratio is already estimated to cross 90 per cent, significantly higher than 60pc debt to GDP ratio limit under the Fiscal Responsibility and Debt Limitation Act.

The World Bank said it had provided a total of $40bn to Pakistan since its membership in 1950. The World Bank’s programme in Pakistan is governed by the Country Partnership Strategy for FY2015-2020 with four priority areas of engagement, including energy, private sector development, inclusion and service delivery. The current portfolio has 46 projects with a net commitment of $9.1bn.

https://www.dawn.com/news/1559066/wb-okays-500m-loan-to-help-govt-fight-covid-19-effect

 

[MenInG]

KARACHI: Pakistan will reschedule $2.41 billion worth of debt repayments in 2020 under the Debt Service Suspension Initiative (DSSI).

The initiative will help the country “enable an effective crisis response. Borrowers therefore commit to use freed-up resources to increase social, health, or economic spending in response to the [Covid-19] crisis,” the World Bank said in a statement accompanying the release of the country specific data on the rescheduling.

Pakistan is the second largest beneficiary of the initiative following Angola.

According to the World Bank figures, the country’s total debt servicing due in 2020 is $8.974bn, of which official multilateral stands at $3.4bn, official bilateral $4.32bn, non-official $850 million and $362.5m is to bondholders.

The $2.41bn rescheduling will decrease the country’s debt service payments to $6.53bn during the year, translating into savings of 0.9 per cent of the GDP.

The DSSI, however, does not cancel these payments but only postpones them to a later date. The suspension period will begin from May 1 and will last until end-2020.

The suspension of payments will be NPV neutral, repayment period will be three years with a one-year grace period and be achieved either through rescheduling or refinancing.

Pakistan has welcomed the initiative, as it will free up much-needed fiscal space to allocate resources on livelihoods affected by the pandemic. However, the country was recently put on negative watch by the Moody’s Rating agency after the government formally requested debt suspension under the initiative. The citing was prompted by uncertainties surrounding the participation of private sector creditors in the DSSI.

The call for DSSI came from the World Bank and International Monetary Fund (IMF) asking global lenders to suspend debt service payments of the poorest countries to help them manage the impact of Covid-19.

In April, the World Bank’s Development Committee and the G20 finance ministers endorsed the call to free up resources of the poorest countries.

The IMF and World Bank will support implementation of the DSSI by “monitoring spending, enhancing public debt transparency, and ensuring prudent borrowing.”

https://dawn.com/news/3000734/pakistans-2-41-bn-debt-payments-to-be-rescheduled

 

[Abdullah719]

China's debt relief to support some stressed emerging markets: Fitch

LONDON: China's pledge to relieve the debt burden owed to it by some emerging market governments could ease near-term liquidity pressures in nations struggling with the fallout from the coronavirus pandemic, Fitch Ratings said on Wednesday.

Kenya, the Maldives, Ethiopia, Cameroon, Pakistan, Angola, Laos, Mozambique, Congo and Zambia are among countries with a significant share of their debt owed to China and eligible for debt relief, Fitch said.

The Chinese government has committed to participation in the group of 20 major nations' (G20) debt service suspension initiative (DSSI), which temporarily suspends debt repayments for 77 developing nations falling due between May and December.

Chinese financial institutions should consult with African countries to work out arrangements for loans with sovereign guarantees, President Xi Jinping said in a speech last week. Fitch said it viewed such loans as bilateral debt.

"China's involvement in the G20 initiative marks the first time it is participating in coordinated, multilateral global debt relief efforts," Fitch said in a note on Wednesday. "Relief from debt service obligations owed to China could play a role in easing liquidity strains faced by a small subset of the countries eligible for the DSSI."

China accounted for more than a quarter of the total external debt of DSSI-eligible countries, the International Institute of Finance (IIF) has estimated, making it the single largest bilateral creditor to those countries.

Some, including Kenya, have said they will not seek debt relief, fearing it could harm their ability to tap capital markets, while others, such as Angola, may agree more extensive relief than is envisaged under the initiative, Fitch said.

In the same speech last week, President Xi also said China will exempt some African countries from repaying zero-interest rate loans due by the end of 2020. Interest-free loans form only a small part of total bilateral debt owed to China for most countries, Fitch said.

https://www.brecorder.com/news/4000...-support-some-stressed-emerging-markets-fitch

 

[Abdullah719]

Abu Dhabi fund suspends debt service repayments for Pakistan, 3 other countries

DUBAI: The Abu Dhabi Fund for Development on Sunday announced it has suspended debt service repayments for some countries including Pakistan, for the current year.

The Fund provides financial assistance to companies in the United Arab Emirates and to developing countries, which has included Pakistan, Egypt, Sudan and Ethiopia.

Debt service repayments would be suspended for eligible countries and individual companies in the developing world from January 1 until December 31, the fund said in a statement.

Countries and companies would need to request to have repayments suspended, it said.

The fund did not say what the criteria would need to be met to be eligible for the scheme.

“At a time when the world is reeling under the effect of the pandemic ... it is imperative for us to support particularly those that need it most, especially the low-income countries,” the fund’s director general Mohammed Saif al-Suwaidi said.

https://www.geo.tv/latest/297576-ab...ice-repayments-for-pakistan-3-other-countries

 

[The Viper]

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.

https://www.brecorder.com/news/4002...t-debt-relief-to-developing-countries-says-pm

 

[MenInG]

Pakistan has returned $1 billion to Saudi Arabia as the second instalment of a $3 billion soft loan, as Islamabad reaches out to Beijing for a commercial loan to help it offset pressure to repay another $1 billion to Riyadh next month, officials said on Wednesday.

Analysts say it is unusual for Riyadh to press for the return of money. Relations between historically close friends Pakistan and Saudi Arabia suffered a strain earlier this year when Foreign Minister Shah Mehmood Qureshi, in an unusually sharp warning, asked Saudi Arabia-led Organisation of Islamic Cooperation (OIC) to stop dilly-dallying on the convening of a meeting of its Council of Foreign Ministers (CFM) on Kashmir.

Army Chief Gen Qamar Javed Bajwa subsequently visited Riyadh in August to ease the tensions. Gen Bajwa also met the Saudi ambassador in Islamabad on Tuesday.

With the $1 billion flowing out, Pakistan — which has $13.3 billion in State Bank foreign reserves — could face a balance of payments issue after clearing the next Saudi instalment.

“China has come to our rescue,” a foreign ministry official told Reuters.

A finance ministry official said the SBP was already in talks with Chinese commercial banks.

“We've sent $1 billion to Saudi Arabia,” he said. Another $1 billion will be repaid to Riyadh next month, he said. Islamabad had returned $1 billion in July.

Although a $1.2 billion surplus in the current account balance and a record $11.77 billion in remittances in the past five months have helped support the economy, having to return the Saudi money is still a setback.

Saudi Arabia gave Pakistan a $3 billion loan and a $3.2 billion oil credit facility in late 2018. After Islamabad sought Riyadh's support over human rights violations by India in occupied Kashmir, Saudi Arabia has pushed Pakistan to repay the loan.

The People's Bank of China did not respond to a Reuters request for comment, and Riyadh didn't issue any details.

https://www.dawn.com/news/1596109/p...lion-of-saudi-arabias-soft-loan-officials-say

 

[globalcitizen]

I don’t understand this strategy.
Paying off the loan by taking another fresh loan from China and being indebted to them always.

Also it’s concerning if remittances are used to pay back these loans. they still belong to bank customers and there could be a liquidity risk if anything untoward happens

 

[PakPremi]

How much IMF loan was left for PTI to pay off at the start of their term, and when was it due.
How much have PTI paid off from that loan and new loan?

 

[Deewana Mastana]

How much IMF loan was left for PTI to pay off at the start of their term, and when was it due.
How much have PTI paid off from that loan and new loan?

$90000 trillion owed from 1970 which will be paid off by 5050.

 

[PakPremi]

$90000 trillion owed from 1970 which will be paid off by 5050.

Serious question I am talking about IMF loan left to be paid off before start of PTI government?

 

[MenInG]

In what comes as a relief amid the Covid-19 pandemic adversely affecting economic activities, G-20 countries have suspended the repayment of $3.7 billion loan by Pakistan till the end of the year, it was announced after a meeting of the federal cabinet on Tuesday.

The cabinet, which met with Prime Minister Imran Khan in the chair, also decided that a third party would monitor and evaluate the projects under the Public Sector Development Program (PSDP).

The G-20 countries have approved the second part of Dalhart’s Group Seasonal Index (DGSI) under which they have suspended repayment by Pakistan of its $ 3.7 billion loan by end of the year.

“The suspension of the loan, which was liable to be repaid instantly, is good news for the national economy,” Federal Information Minister Fawad Chaudhry said at a post-cabinet media briefing.

The cabinet has also decided to create a third party mechanism to evaluate the utilisation of funds on the projects to be executed in the Centre and provinces under the PSDP.

“The initiative is aimed at sensitising the public about the utilisation of funds, ensuring execution of the PSDP projects in true letter and spirit, and bringing transparency to the system,” the minister added.

The cabinet also gave the nod to the plan to introduce a national digital cable policy.

"Moving our cable channels from the existing analog to the digital mode will ensure transparency in the ratings,” Fawad said.

He added that the move would also help in increasing the number of channels to up to 900 to 950, such as those related to science, technology and history.

Moreover, he maintained, the channels would be run on the subscription model to create a futuristic media scene.

"Cable operators will have the right to buy content while youth will be able to sell their content to them," the information minister said, adding that this would help create a new content industry.

He observed that the step would also help incentivise the channels, as well as those running YouTube channels, to sell their content.

The minister said the National Command and Operation Centre (NCOC) might announce reopening of cinemas from June 30 considering the improvement in the Covid-19 positivity ratio in the country.

"Have spoken to the NCOC and [Federal Minister] Asad Umar has promised that cinemas will be reopened by June 30. However, a final decision will be made by the NCOC," he clarified.

The minister further said the government wanted to put the electronic voting machines [EVMs] to use as early as possible.

"We want to enable the use of EVMs by as early as the next by-elections," he added.

Fawad said the machines had been developed as per the aspirations of the Election Commission of Pakistan (ECP).

He added that the government considered overseas Pakistanis as a vital component [of the national mainstream], while referring to granting the expatriates the right to vote.

According to Fawad, the entire nation was looking at the matter of accountability as if it was “some kind of a joke”.

“We request the judiciary to decide [PML-N President] Shehbaz Sharif's case on a day-to-day basis," he added.

"The schedule for hearing of cases isn't issued despite the passage of up to six months.”

During the meeting, the parliamentary affairs ministry told the cabinet that the legislation on electoral reforms had been sent to the Senate after its passage from the National Assembly.

A report on the National Database and Registration Authority (NADRA) audit system was also submitted to the information technology ministry.

The minister said the cabinet had also decided that 42.6% income share of the Central Business District, being established at the Walton Airport site in Lahore, would be given to the Civil Aviation and 57.4 % to the Punjab government.

“The Civil Aviation had the ownership of 52 acres and the Punjab government owned 70 acres,” he elaborated.

He described Imran Khan the ‘only prime minister,’ who was a true environmentalist and environment-friendly PM and had serious concerns that cities were being expanded without any planning that too horizontally. “But, we need to expand the cities vertically.”

The minister said now billions of rupees investment would pour in due to the construction of vertical buildings, which would add to the beauty of Lahore.

The cabinet also approved handing over of convicted Muhammad Awais, involved in a rape and domestic violence case, to Norway on his own request. It gave the nod to a storm water drains project under the Karachi Transformation Plan.

The cabinet also approved the regularisation of an air company, AHS Air International (Pvt) Ltd charter lenience class –II, from August 17, 2016, while further extension to air company would be given by the aviation minister as per the policy.

The minister said the cabinet also discussed the ongoing budget session and the government wanted a thorough debate on the budget and would listen to the constructive criticism.

“But criticism and insulting are two different things,” he said, referring to the National Assembly descending into chaos earlier in the day.

Lawmakers from the treasury and opposition benches nearly came to blows and hurled objects at each other.

“The opposition under the garb of criticism was trying to insult [the treasury members], which is not acceptable in any case,” Fawad maintained.

“As planned by Shehbaz Sharif, PML-N MNAs were given the task of sloganeering and misconduct. We will never allow anyone to do such things in parliament.”

According to sources, PM Imran expressed his displeasure over the opposition’s behaviour and directed the party’s lawmakers to respond to them in the same manner.

Foreign Minister Shah Mahmood Qureshi and Defence Minister Pervez Khattak were in favour of approaching a reconciliatory approach in parliament. However, most ministers were of the opinion that the treasury benches should not succumb to pressure and “fight fire with fire”.(With input from APP)

 

[Last Monetarist]

https://www.dawn.com/news/1661335/pakistan-elected-g77-chair-seeks-debt-restructuring-for-developing-nations

Pakistan, which was elected chair of the Group of 77 countries on Tuesday, has demanded debt restructuring and allocation of more resources for developing nations to rejuvenate the global economy.

The bloc, known as G77 plus China, is a loose alliance of developing countries established on June 15, 1964. The group derives its name from the 77 original signatories, although it now has 134 members.

Pakistan is a founding member and Tuesday’s election was held by acclamation.

Addressing the group's 45th annual meeting at the United Nation's headquarters in New York, Foreign Minister Shah Mahmood Qureshi urged developing nations to promote a common development agenda to return to the path of sustained and sustainable growth.

As the new chair, "Pakistan hopes to collaborate with members of the group to promote a common development agenda for developing countries that includes debt restructuring, redistribution of the 650 billion new special drawing rights (SDR) to developing countries, and larger concessional financing,” Qureshi said.

SDRs are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF).

The minister also called for the mobilisation of the $100 billion in annual climate finance by developed countries, ending the billions in illicit financial flows from developing countries and the return of their stolen assets.

Qureshi also underlined the need for creating an equitable and open trading system along with a fair international tax regime.

The primary goals of the G77 are to maintain the independence and sovereignty of all developing countries, to defend the economic interests of member states by insisting on equal standing with developed countries in the global marketplace.

It also seeks to establish a united front on issues of common concern, and to strengthen ties between member countries.

As a founding member, Pakistan has contributed consistently to the shared objectives and interests of the group and has had the distinct privilege to chair the group in New York on three occasions in the past.

Qureshi reminded the international community that the world was facing a triple challenge: the Covid-19 pandemic and its consequences, the realisation of sustainable development goals (SDGs) and climate change.

He pointed out that the pandemic and climate change have had a disproportionate impact on developing countries and reversed their progress towards achieving the SDGs by 2030.

Qureshi noted that rich nations had injected over $26 trillion to stimulate their economies and recover from the Covid-19 crisis but “the developing countries have been unable to mobilise even a fraction of the $3-4 trillion they need for economic recovery”.

Noting that the developing world was home to 80 per cent of the world's population, he warned that the disruption of supply chains, and the revived demand in developed economies, had triggered global inflation, compounded the plight of the poor and complicated the debt and liquidity problems of the developing countries.

“Unless the challenges confronting developing countries are addressed and overcome, the world economy will not be able to return to the path of sustained and sustainable growth,” he said. “Islands of prosperity cannot co-exist within an ocean of poverty.”

"The world economy will not succeed in overcoming these challenges, unless developing countries generate adequate financial support to address their debt," Qureshi said, calling for an equitable financial and trade architecture.

“Developing countries need to promote a common development agenda to return to the path of sustained and sustainable growth,” he said.

“Pakistan believes that notwithstanding their current challenges, the greatest potential for economic growth is in the developing world but first it must set out the parameters for equitable global growth and development and realise the promise of a more equal and inclusive world,” he said.

 

[MenInG]

Prime Minister Imran Khan said on Monday that the illicit financial flows from developing countries to the developed nations deplete resources of the former and that the phenomenon also manifests itself in creating issues like illegal migration.

The premier was talking to Minister for Migration and Asylum of Hellenic Republic (Greece) Panagiotis Mitarachi who called on him along with his accompanying delegation.

PM Imran said that while stemming illicit financial flows, ways should also be discovered to establish pathways to legal migration.

In this context, he appreciated Greece’s initiative of establishing legal migration channels which would open avenues for Pakistani skilled labour.


Prime Minister Imran Khan during a meeting with Greek minister Panagiotis Mitarachi in Islamabad on February 7, 2022. PHOTO: APP

He underlined the importance Pakistan attached to its cooperative ties with Greece and stressed the need for increased collaboration in diverse fields including migration.

Afghan crisis

On the occasion, Premier Imran also underlined the urgency of addressing the dire humanitarian situation in Afghanistan and preventing an economic meltdown.

He stressed it is imperative to release frozen Afghan assets to alleviate sufferings of the 40 million Afghan people, as it would help build a sustainable Afghan economy and prevent mass exodus of Afghans to other countries.

Reciprocating, Mitarachi highlighted the importance of Greece-Pakistan relations and regular bilateral exchanges.

While conveying cordial greetings to the Prime Minister of the Hellenic Republic, he also conveyed his invitation to the prime minister to visit Greece.

Mitarachi appreciated the Pakistani community’s role in building the economy of Greece and outlined the proposed plan for legal migration channels between the two countries.

Pakistan and the Hellenic Republic enjoy friendly relations, with a strong Pakistani diaspora of more than 60,000 being an important economic and cultural bridge between the two countries.

The visit is expected to further help enhance cooperative ties between the two countries.