Pakistan is included in the G20 debt relief program as a group of the world’s 20 largest economies (G20s) agreed to freeze $ 40 billion of debt owed to developing countries by December, allowing 76 countries to benefit from the program.
According to a statement issued by the World Monetary Fund (IMF), the purpose of freezing debt owed to developing countries for one year is to help developing countries affected by the Coronavirus deal with health and economic problems.
Sources say the relief will delay the payment of Pakistan’s $ 12 billion debt. Pakistan’s obligations are about $ 12 billion to the IMF, the World Bank, the ADB, the Islamic Development Bank, and the Paris Club.
IMF’s statement says developing countries have to repay nearly $ 40 billion of loans this year, but given the current situation in the Coronavirus, developing countries had requested IMF to freeze loans. Pakistan is also included in these 76 countries of G20 debt relief program.
The World Bank says the G20 countries have agreed to freeze these loans for a year. Saudi Arabia will freeze $20 billion debt out of$40 billion. Sources say that the payment of Pakistan’s $ 12 billion loan will be delayed under the scheme introduced by the IMF.
According to sources, the loans to be delayed to Pakistan include the IMF, the World Bank, the Asian Development Bank, the Islamic Development Bank, and the Paris Club.