Flood-Hit Pakistan Should Suspend Debt Repayments, Says UN Paper: Report

Pakistan Floods: Floods have affected 33 million Pakistanis.

Pakistan ought to droop worldwide debt repayments and restructure loans with collectors after current floods added to the nation’s monetary disaster, the Financial Times reported on Friday, citing a UN coverage memo.

The memorandum, which the UN Development Programme will share with Pakistan’s authorities this week, states that the nation’s collectors ought to take into account debt reduction in order that policymakers can prioritise financing its catastrophe response over mortgage compensation, the newspaper mentioned.

Pakistan has earlier estimated the harm at $30 billion, and each the federal government and UN Secretary-General Antonio Guterres have blamed the flooding on local weather change.

The memo additional proposed debt restructuring or swaps, the place collectors would let go of repayments in trade for Pakistan agreeing to spend money on local weather change-resilient infrastructure, FT mentioned.

Floods have affected 33 million Pakistanis, inflicted billions of {dollars} in harm, and killed over 1,500 individuals – creating concern that Pakistan won’t meet money owed.

(Except for the headline, this story has not been edited by NDTV workers and is printed from a syndicated feed.)

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