Pakistan, which is facing severe economic crisis, has reached the brink of bankruptcy. The remaining Pakistani economy has been broken by the Corona virus. Meanwhile, its biggest ‘donors’, Saudi Arabia and the UAE, are seeking back their multibillion-dollar debt. At the same time, China, the evergreen friend of Pakistan, is also reluctant to give loans to Pakistan.

Pakistan, which is facing severe economic crisis, has reached the brink of bankruptcy. The remaining Pakistani economy has been broken by the Corona virus. Meanwhile, its biggest ‘donors’, Saudi Arabia and the UAE, are seeking back their multibillion-dollar debt. At the same time, China, the evergreen friend of Pakistan, is also reluctant to give loans to Pakistan. Due to this, Imran Khan has given a request for exemption from his debtor countries to repay the loan installment till the end of the corona virus epidemic.

Requested to stop debt collection till corona crisis

Imran Khan has requested the international community to suspend loan payments to low-income and most affected countries and cancel the liability of Least Developed Countries until the end of the corona virus epidemic. Pakistan’s economic woes have been compounded by the cash crisis and the Imran Khan government is arranging financial support from global bodies, including the International Monetary Fund (IMF), to overcome the crisis.

Imran Khan appealed to the lending countries in the UN

Presenting the ten-point agenda for immediate action at the UN General Assembly special session on covid-19, Khan emphasized the steps that the international community should take at such a time. The first thing on their list would be to request a suspension for the low-income and most affected countries until the end of the debt repayment epidemic. The second priority will be the demand for loan waiver for the Least Developed Countries who cannot pay their debts.

Saudi withdraws financial support from Pakistan
Angered by Pakistan’s treatment of Kashmir, Saudi Arabia withdrew its financial support in May. In October 2018, Saudi Arabia announced a $ 6.2 billion financial package for 3 years to Pakistan. This included cash assistance of $ 3 billion, while oil and gas were to be supplied to Pakistan for the rest of the money.

Debt to be 90 percent of Pakistani GDP
According to Pakistani media report, Pakistan’s public debt will increase to 37,500 billion Pakistani rupees or 90 percent of gross domestic product (GDP) this year. The report said that Pakistan will spend Rs 2,800 billion on repaying the debt only this year, which is 72 percent of the estimated tax collections of the Federal Board of Revenue. When the Pakistan Tehreek-e-Insaf (PTI) government came to power two years ago, the public debt was Rs 24,800 lakh crore, which is growing rapidly.

Also read : Small businesses expect COVID-19 cases to suffer epidemic losses

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