The All Pakistan Business Forum has appreciated the debt relief measures taken by the G20 countries, IMF and the World Bank for the developing countries including Pakistan, urging the government to pass on this relief to the small industries, which have struggling for the survival amidst worldwide lockdowns.
APBF President Syed Maaz Mahmood, in a statement, observed the initial relief packages of $1.4 billion by the IMF and $1 billion by the World Bank would have substantial impact and provide much needed fiscal space to Pakistan which should be used for the wellbeing and welfare of the public, especially the poor and disadvantaged segments of society.
He expressed the hope the it would have been a grant instead of another loan for the country, which is already under heavy burden of foreign debts, as Pakistan’s external debt, during new government tenure, has increased by about Rs2.5 trillion while the domestic debt escalated to around Rs21.5 trillion at the end of the last calendar year, which is alarming.
“APBF welcomes the international financial institutions, especially the WB to respond positively to the dilemma confronting Pakistan in the face of the pandemic.” While noting that the Covid-19 pandemic has posed unprecedented health and economic challenges, he underlined that a global recession might become worse than the Great Depression.
A global pandemic cannot be contained without strong, coordinated and well-crafted global response, he stressed. “We appreciate the efforts of World Bank Country Director for Pakistan Illango Patchamuthu for pursuing the G20 countries to also include Pakistan in the list.”
Syed Maaz Mahmood said that it is also step forward to give impetus to government’s relief-oriented programs, especially for the SMEs. He said that due to the coordinated efforts of Mr.
Illango Patchamuthu the World Bank’s Board of Executive Directors also recently approved a $200 million package to help Pakistan take effective and timely action to respond to the Covid-19 pandemic by strengthening the country’s national healthcare systems and mitigating socioeconomic disruptions.
He said the G-20 countries decision to suspend the developing countries’ debt payments for one year will provide fiscal space to Pakistan to cope with the situation arising out of coronavirus.
He termed the decision as historic and timely, saying the 76 countries including Pakistan will simultaneously benefit from this debt relief. On this occasion, APBF president announced to endorse the PM’s call on the international community to write off the debts of vulnerable countries, such as Pakistan.
“We welcome the short-term relief but the developed world should also think of some sort of a debt write-off for Pakistan, which is very vulnerable, as it would help it in coping with the post-coronavirus effects.”
As part of the diplomatic outreach, the APBF is considering to approach the embassies and meet diplomats from a wide range of countries notably from the Paris Club, Highly Indebted Poor Countries, heads of international organizations and others concerned to join the hands in this endeavor.
He called upon the civil society to get together to support the government in this regard, fearing that if Pakistan sees a serious outbreak than the government’s efforts to revive the economy will be shattered badly.
