PM proposes UN to suspend debt payments of crunched economies

F.P. Report

ISLAMABAD: On Monday, Prime Minister Imran Khan addressed the United Nations Conference on Trade and Development (UNCTAD) Intergover-nmental Group of Experts (IGE) on Financing for Development in Geneva and called for suspension of debt payments.

In his address Prime Minister proposed a five-point agenda that will prove affective in addressing the structural barriers regarding global prosperity, proposing equitable supply of COVID vaccine to developing countries.

Prime Minister also proposed suspension of debt repayments for most stressed countries until end of pandemic.

During his address he emphasized for a workable framework for evenhanded and affordable supply of COVID vaccine to developing countries, saying that “the coverage of the COVAX facility must be expanded”.

Khan also underscored that this framework would allow the developing countries to spend their precious resources on socio-economic development needs”.

Referring to the developing countries with crunched economies because of pandemic Prime Minister Imran Khan said that the pandemic is an opportunity to address the structural barriers hampering global prosperity and development.

Prime Minister recalled April last year when he urged the international community for ‘Global Initiative on Debt Relief’ for creating fiscal space and revitalizing economic growth for developing countries. Mentioning he SDG’S he added that “I am afraid much more needs to be done on this account. Otherwise, achieving the Sustainable Development Goals by the target date of 2030 will remain a daunting challenge.”

While proposing his suggestion of the suspension of debt re-payments for the most stressed countries until the end of the pandemic. Khan also proposed that the reformation of their public-sector debt under an agreed and inclusive multilateral framework is needed. Furthermore, Prime Minister Imran Khan also emphasized that the expansion of concessional financing through multilateral development banks was also essential, he emphasized.

While expressing his views Prime Minister Imran Khan called for a general allocation of Special Drawing Rights (SDRs) of  US $ 500 billion  to help alleviate balance-of-payment pressures.

Referring towards the illicit financial outflows, Prime Minister repeated his stance over the return of stolen assets held by corrupt politicians and criminals in foreign countries, that the illegal financial outflows from developing nations caused more poverty in that world than any other factor.

He mentioned that “Reportedly, a staggering amount of US $ 7 trillion is parked in “haven” destinations. He also revealed that it is also reported that one trillion dollars yearly leaves the developing countries for these “haven” destinations.”

Prime Minister Imran Khan attended the meeting also addressed by prime minister of Barbados, vice president of Plurinational State of Bolivia, and second vice president of Government of Spain.  

While mentioning the fifth point of the agenda in the meeting, the participants of the agreed on the target of mobilizing 100 billion dollars annually by developed countries for climate action in developing countries.

During his addressing Khan also shed light over global policy measures saying that the economic malaise and recession “highly communicable” like the coronavirus, global policy measures, along his proposed outline were immediately required to save lives, perk up economies, and build back better.