Pakistan to be listed in G 20 Debt Relief Plan
World Bank and the International Monetary Fund (IMF) stressed G 20 grouping to ensure instant debt relief to underdeveloped countries in lieu with Covid-19 pandemic. Pakistan is also announced eligible for G 20 Debt Relief Plan on all principal & interest payments.
As per news sources, G 20 held a meeting in Riyadh. In this meeting its decided all countries grouped under the World Bank’s International Development Association (IDA) to be eligible for debt relief under the proposed plan. Pakistan is one out of 76 countries part of this group. The debt relief period starts from May 1 & continue till Dec 1, 2020. This whole tax will summed up in another loan. Its decided to be paid in 3 years while starts after June 2022.
However, IMF yet to made certain guidelines and regulation. In particularly, official bilateral” creditors is yet to define. Authorities in Pakistan are confident, but not yet certain, that the definition will be broadly applicable on all categories of debt on which the country has servicing obligations this year.
News Source: Dawn