Cash-Strapped Pak to Get Debt Repayments Relief?
UN Memo calls for suspension of Pak Loan payment
Relief may be granted after flood damage worth $30 billion
Pakistan may get a huge relief from the repayment of its international debt .
According to a report in the financial times UN policy memo has called for suspension of international debt repayments for Islamabad .
UN memorandum states that Pak creditors should consider debt relief so that's the country can priorities financing its flood response says report .
Debt Relief For Flood-Ravaged Pak?
“Creditors of Pakistan should consider debt relief so that policy makers can prioritize financing its disaster response over loan repayment . Pakistan needs to suspend international debt repayments and restructure loans with creditors after recent floods added to the country financial crisis .
The country can opt for a debt swaps whereby creditors would forgo repayments in return for Pakistan agreeing to invest in climate change-resilient infrastructure.”(UNDP Memorandum Draft The Financial Times )
Pakistan whose external debts total about $100Billion was struggling to repay loans even before unprecedented flooding recently . The country which has been particularly hard hit by the global surge in commodity prices received a $1.1 billion bailout from the IMF last month .
Flood disaster has magnified Pak challenges affecting more than 30 million people and causing an estimated $30 billion in damage .
The latest United Nations development programme memo argues Islamabad and its creditors to find a longer-term solution .
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