The apex chamber of Pakistan has welcomed the extension of debt suspension initiative for developing countries by the G20, calling for long-term loans relief or their permanent termination to deal with the post-corona economic crunch.
FPCCI President Mian Anjum Nisar said though the global economy has begun a gradual recovery with the reopening of businesses, the recovery has not been smooth, as many of the poor countries are still spending more on debt payments than on life-saving public services.
He also supported Prime Minister Imran Khan’s call to the international community to write off the debts of vulnerable countries, including Pakistan, as the coronavirus has shattered the economies of developing nations.
The world community should think of some kind of a debt write-off for countries like Pakistan, as its major chunk of income is being spent on debt servicing, making it very vulnerable, he said.
He said that the central bank’s foreign exchange reserves have declined stridently by over one billion dollars during last one month mainly owing to external debt servicing.—PR