ISLAMABAD: Keeping in view the virus crisis IMF had decided to provide one-year relief to Pakistan.
FM Shah Mehmood Qureshi held yesterday (Thursday 16th of April, 2020): “Developing nations have been hit the hardest with the pandemic.” He pointed out that: “Prime Minister Imran Khan had appealed to IMF for debt relief for developing countries which was accepted by the Fund. IMF has announced it would give one-year relief to 70 developing nations including Pakistan.” He further told that the relief by IMF would be for 1 year and is scheduled to commence on 1st of May, 2020.
It is believed that these developments would contribute towards Pakistan’s debt rescheduling for the next two years. It is pertinent to mention here that G20 finance ministers and central bankers endorsed a time-bound suspension of debt service payments for the poorest countries…All bilateral official creditors will participate in this initiative.
In a joint statement issued by World Bank Group President David Malpass and IMF Managing Director Kristalina Georgieva stated: “We strongly welcome the decision of the G20 to respond to our call to allow the poorest countries of the world that request forbearance to suspend repayment of official bilateral credit on 1st May.”
Relevant:
Debt relief measures by G20, IMF and WB welcomed
16th of April, 2020
ISLAMABAD: Prime Minister Imran Khan, while talking to Finance Advisor Dr. Abdul Hafeez Shaikh here today, has appreciated the debt relief measures by G20, IMF and WB for Pakistan and other developing countries.
Dr. Abdul Hafeez Shaikh briefed the premier about planned approval of an additional $ 1.4 billion concessionary financing from IMF to deal with COVID-19’s economic impact.
Prime Minister was also informed about the progress on various components of Economic Stimulus Package announced by the government.
COVID-19: IMF to decide about debt relief for Pakistan on 16th of Apr, 2020
14th of April, 2020
WASHINGTON: The Managing Director of International Monetary Fund (IMF) has announced that the board has decided to provide immediate debt relief to 25 poor countries amid coronavirus outbreak.
The relief will enable the countries free up funds to fight the COVID-19 pandemic.
“This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts,” IMF MD Kristalina Georgieva said in a statement today.
The countries who will get the relaxation in debt include Afghanistan, Yemen, Nepal, Haiti and nearly all countries in Africa.
According to Georgieva, no country would be asked to pay debt amount from May 1 through June as they already struggle to fight the COVID-19 pandemic.
The IMF, together with the World Bank, has asked rich nations to stop collecting debt payments from poor countries during this period,” she said, adding that the debt relief will be funded by the IMF’s Catastrophe Containment and Relief Trust (CCRT).
The managing director of the IMF further added that the fund currently has $500 million, contributed by the Netherlands, the United Kingdom, People’s Republic of China and Japan.
“I urge other donors to help us replenish the trust’s resources and boost further our ability to provide additional debt service relief for a full two years to our poorest member countries,” Georgieva said.
On the other hand, the International Monetary Fund will also take a final decision about approval of debt relief for Pakistan on Thursday, April 16.
Earlier: IMF willing to support Pakistan in its war against Coronavirus
IMF had earlier shown willingness to help Pakistan that is suffering economically while attempting to contain the menace of Coronavirus.
According to details, the IMF had stated that it would consider Pakistan’s request for financial assistance under its Rapid Financing Instrument (RFI) facility to augment the country’s foreign exchange reserves and budgetary support enabling the Pakistan government absorb the shock due to the ongoing Coronavirus pandemic.
IMF Managing Director Kristalina Georgieva has stated: “Our team is working expeditiously to respond to this request so that a proposal can be considered by the IMF’s executive board as soon as possible.”
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