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Finance ministry clarifies reports regarding debt relief from G-20

Finance ministry clarifies reports regarding debt relief from G-20

ISLAMABAD: The Ministry of Finance has clarified news reports published in a section of the press on why the government has failed to request for debt relief from the G-20.

In a statement, the Finance Division has stated that the G-20 template letter is being prepared by the G-20 Secretariat and the G-20/Paris Club will publicize it when it becomes available. The Government can apply only once the template becomes available.

Earlier, Foreign Minister Shah Mahmood Qureshi Thursday said that on Prime Minister Imran Khan’s appeal, the G20 countries had decided to provide debt relief to 76 developing countries giving them a fiscal space to make spending on their worst-hit segments of population amid Covid-19 pandemic.

“This is a great decision. This is a very timely decision. Look at the scope of this decision. 76 countries will benefit from it. This will be enforced immediately from May 1,” the foreign minister said addressing a press conference.

He said despite many cautious voices, the prime minister had launched an appeal to the world community on April 12, calling for debt restructuring for the developing world as the extraordinary spending by them had shrunk their fiscal space badly impacting the revenue generation and exports.

He said after scraping, Pakistan could only manage an economic stimulus package of $8 billion though it was unprecedented.