TLTP
ISLAMABAD
Prime Minister Imran Khan has urged the rich countries to raise at least $500 billion to create fiscal space for developing countries in wake of Covid-19 pandemic.
In his virtual address at the Financing for Development summit at UN headquarters in New York on Tuesday, the Prime Minister said that an amount of $500 billion should be available for the developing countries.
He said the investment in sustainable infrastructure would be key to a resilient economic recovery and realization of Sustainable Development Goals (SDGs).
Welcoming the extensive “Menu of Options” identified by each of the six discussion groups, the Prime Minister said they must prioritize those actions that could have a significant impact and could be quickly implemented.
“First, extension of the G-20’s Debt Service Suspension Initiative for at least another year. The request for forbearance under this Initiative should not affect the country’s credit rating, since this is due to force majeure, not mismanagement. Second, the Multilateral Development Banks should participate in the Debt Suspension Initiative. Third, other short-term measures which could cover both official and private creditors include: debt swaps for health, climate and SDGs; debt buy-backs; re-profiling debt; and regional resilience funds,” he suggested.
He said the International Monetary Fund (IMF) estimated that developing countries would require an additional $2.5 trillion to recover from COVID-induced contraction.
He stressed the need for creating a UN Infrastructure Investment Facility to mobilize an additional $1.5 trillion annually in the developing countries as the IMF estimates that developing countries will require an additional $2.5 trillion to recover from Covid-induced contraction.
The Prime Minister said, “We must break the shackles of poverty and inequality.” He said that Covid-19 pandemic is inflicting unparalleled human suffering and controlling the virus is critical to address both the health and the economic emergency.
The Prime Minister said, “In Pakistan, our strategy of smart lockdowns has fortunately controlled the spread of the virus.” He said that no one is safe until everyone is safe. He said debt relief is one of the quickest ways to create fiscal space for developing countries. He said that despite difficulties, the Pakistan government launched a relief package worth $8 billion for the masses during the pandemic.
The Prime Minister expressed the hope that a vaccine would be available soon. Everyone, everywhere, must had equitable and affordable access to the vaccine, as a global public good.
The prime minister further said recovery from the recession, as from the pandemic, must be inclusive and equitable.
“We must break the shackles of poverty and inequality,” he added. TLTP
