UN urges creditors to suspend Pakistan’s loan to govt help prioritize disaster response

Pakistan's “unprecedented” flood losses stand at $30 billion and counting
<p>Millions have been displaced due to monstrous floods in the country. Photo: Online</p>

Millions have been displaced due to monstrous floods in the country. Photo: Online

The United Nations has urged international creditors to consider suspending debt repayment for Pakistan the country can prioritize disaster response over debt repayment, the Financial Times cited a UN policy memo as saying.

The UN Development Programme (UNDP) is expected to share the memorandum with the Pakistan government this week.

The UN, in its memo, has said that Pakistan should suspend international debt repayments and restructure loans with creditors after recent floods added to the country’s financial crisis.

During his visit to Pakistan earlier this month, UN Secretary-General António Guterres said that Pakistan had suffered “unprecedented” flood destruction and its losses stood at $30 billion and counting.

Both the Pakistan government and Antonio Guterres have climate change for the ‘monsoon on steroids’ that triggered monster floods in the country.

In an interview with Bloomberg aired on Friday, Prime Minister Shehbaz Sharif also made an urgent appeal for debt relief from rich nations as catastrophic floods exacerbated by climate change displaced millions in the country.

PM Shehbaz said that Pakistan has debt obligations in the next two months.

He is scheduled to address the 77th session of the UN General Assembly today.

Floods 2022

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