Amidst disastrous floods, Pakistan should suspend debt repayment says UN policy paper
United nation policy memorandum urged Pakistan’s creditors to provide relief on the debt to help Pakistan prioritize flood relief. The financial times reported on Friday that the memo said that Pakistan should suspend debt repayment and redirect its focus on damages caused by catastrophic floods.
The memorandum will be shared with the Pakistani government by the United Nation development program in a week. According to the memorandum, Pakistan should be given debt relief so that the government can prioritize flood relief activities instead of repaying the loan installments.
The memo also proposed an idea that the creditors can choose “debt swapping or debt restructuring” where Pakistan will invest in climate change-resilient infrastructure and climate change policies instead of paying back to the countries.
Meanwhile, the World Bank will give $850 million to Pakistan on immediate bases for flood relief activities in different sectors.
Earlier when the United Nation Secretary-General António Guterres was in Pakistan on his official visit he said “I have seen many humanitarian disasters in the world, but I have never seen climate carnage on this scale,” He termed the destruction caused by floods as “unprecedented”