By: Ali Mustafa
Pakistan’s efforts to overcome its economic woes have been met with great success at the international level when the Group of 20, member countries and institutions of the Paris Club have repaid 1. 1.7 billion or Pakistani debt of Rs. 272 billion. Postponed return. The loan rescheduling agreement was negotiated with 19 lenders for several months which was successful and thus a comprehensive agreement was signed. A statement from the Ministry of Economic Affairs said the move would help offset the damage caused by the corona virus. The government of Pakistan has termed the move to defer loans as timely and hoped that it would help in protecting the lives, employment and economy of millions of Pakistani citizens. The agreement aims to facilitate the effective coronation of the global Corona epidemic and the allocation of resources for medical purposes. The G20 countries have deferred a total of 52 526 million, including France, China and Switzerland. According to the French embassy, France has deferred .7 189.7 million while China has deferred 34 347 million. It is noteworthy that in the wake of the Corona epidemic, Prime Minister Imran Khan has consistently urged international donors and lenders to forgive the debts of poor and backward countries as tax recovery has declined during the Corona period and inflation has risen. Money and fiscal deficits widened. As a result, earlier this year, the G20 and the Paris Club agreed to provide debt relief to the world’s poorest countries. In June, Pakistan was included in the list of the few developing countries for which approval was granted for easing the debt of the Paris Club. Although Corona’s losses in Pakistan were much smaller than in other countries as a result of the government’s prudent strategy, the country’s already heavy debt burden made it easier to repay them. As of August 2020, the volume of debt payable to Pakistan was 0 270 billion, which is 107% of the PDP. Of that, .3 11.3 billion is owed to the Paris Club and 5. 5.765 billion to the IMF. Debts are an integral part of the current global economic system, with each country borrowing from other countries and institutions to meet its own needs. Pakistan is no exception to this requirement, but if they are not paid on time, their rescheduling becomes necessary. In Pakistan, on the one hand, old loans are being repaid and on the other hand, efforts are being made to offset the losses of Corona and revive the overall national economy. In this regard, Finance Minister Hafeez Sheikh, while addressing the Institute of Policy Reforms, pointed out the unfortunate aspect of the country’s politics that no Prime Minister has successfully completed 5 years so far which has not brought stability in economic policy. Could Then there were protests and lockdowns during the change of government, which hurt the economy. This state of instability has negatively affected investment and productivity. Among other issues, coronavirus re-emergence is currently a challenge. Then poverty, inflation and unemployment have made people’s lives miserable. In such a scenario, all the steps that are being taken to revive the economy are welcome. The government is also expected to focus on removing political instability in the country so that its economic initiatives can be fruitful and the country can recover from the crisis.