FM Qureshi calls for debt write-off relief to developing nations
Shah Mehmood Qureshi says alleviating financial burden will help struggling counties cope with COVID-19
Foreign Minister Shah Mehmood Qureshi. PHOTO: PID
ISLAMABAD:
Foreign Minister Shah Mehmood Qureshi on Saturday reiterated Prime Minister Imran Khan’s call to the international community to consider writing off loans for developing countries such as Pakistan in order to ensure resource allocation to fight coronavirus that has gripped the world.
Qureshi’s call in a series of tweets came as a top International Monetary Fund (IMF) official said the impact of the global coronavirus pandemic would be “quite severe,” but a long expansionary period and high employment rates mean the global economy should weather the current shock.
Earlier this week, Prime Minister Imran Khan expressed concern over the devastating impact the virus might have on economies of developing countries. In an exclusive interview with Associated Press, he maintained that Pakistan did not have the capability and resources to deal with the novel coronavirus.
“I reiterate PM's call for alleviating this financial burden to protect the most vulnerable already struggling to cope with the challenge with limited resources & infrastructure to fight this pandemic (Covid-19),” Qureshi wrote on his Twitter handle.
“PM Imran Khan has also underscored the importance of relieving the burden of debt-ridden developing countries in order to ensure resource allocation for saving lives and stemming eco decline,” he said. “The UN SG has highlighted the message of global solidarity and focusing on protecting the most vulnerable.”
Coronavirus, which started from the central Chinese city of Wuhan in December has infected more than 250,000 people around the world and killed more than 10,000. Efforts to contain the spread of the disease, COVID-19, have resulted in severe shocks to both supply and demand around the world.
Leaders of the Group of Seven (G7) rich nations last week said they would do “whatever it takes” to respond to the outbreak, but provided no specifics. Leaders of the world’s 20 major economies (G20) will hold a virtual summit next week, but divisions within the group dim hopes for strong action.
Martin Muehleisen, who heads the IMF’s strategy policy and review department, said in an IMF podcast that the main goal for governments should be to limit the spread of the virus in a way that provides confidence that the economic shock will be temporary.
Muehleisen said the IMF was working to address the crisis through zero- and low-interest rate loans and grants, and was ready to help emerging markets deal with sharp capital outflows. However, he stressed the need for both governments and the private sector to have sufficient buffers.
US sanctions on Iran
Foreign Minister Qureshi also spoke to his German counterpart, Heiko Maas, and urged all the countries to forge unity to overcome the common challenge of coronavirus pandemic.
“Coronavirus is a common threat and all regional countries should demonstrate unity to win this fight,” he said.
He expressed concern over the rising COVID-19 cases in Germany and Iran. During the conversation, Qureshi repeated his call on the international community, including the US, to lift economic sanctions on Iran to enable it to fight the contagion.
Islamabad has stepped up its diplomatic efforts for lifting of the US sanctions against Tehran after Iran’s President Hassan Rouhani wrote a letter to PM Imran, asking him to play his role in this regard. According to Tehran, sanctions have badly hampered its fight against the coronavirus. Agencies
Foreign Minister Shah Mehmood Qureshi on Saturday reiterated Prime Minister Imran Khan’s call to the international community to consider writing off loans for developing countries such as Pakistan in order to ensure resource allocation to fight coronavirus that has gripped the world.
Qureshi’s call in a series of tweets came as a top International Monetary Fund (IMF) official said the impact of the global coronavirus pandemic would be “quite severe,” but a long expansionary period and high employment rates mean the global economy should weather the current shock.
Earlier this week, Prime Minister Imran Khan expressed concern over the devastating impact the virus might have on economies of developing countries. In an exclusive interview with Associated Press, he maintained that Pakistan did not have the capability and resources to deal with the novel coronavirus.
“I reiterate PM's call for alleviating this financial burden to protect the most vulnerable already struggling to cope with the challenge with limited resources & infrastructure to fight this pandemic (Covid-19),” Qureshi wrote on his Twitter handle.
“PM Imran Khan has also underscored the importance of relieving the burden of debt-ridden developing countries in order to ensure resource allocation for saving lives and stemming eco decline,” he said. “The UN SG has highlighted the message of global solidarity and focusing on protecting the most vulnerable.”
Coronavirus, which started from the central Chinese city of Wuhan in December has infected more than 250,000 people around the world and killed more than 10,000. Efforts to contain the spread of the disease, COVID-19, have resulted in severe shocks to both supply and demand around the world.
Leaders of the Group of Seven (G7) rich nations last week said they would do “whatever it takes” to respond to the outbreak, but provided no specifics. Leaders of the world’s 20 major economies (G20) will hold a virtual summit next week, but divisions within the group dim hopes for strong action.
Martin Muehleisen, who heads the IMF’s strategy policy and review department, said in an IMF podcast that the main goal for governments should be to limit the spread of the virus in a way that provides confidence that the economic shock will be temporary.
Muehleisen said the IMF was working to address the crisis through zero- and low-interest rate loans and grants, and was ready to help emerging markets deal with sharp capital outflows. However, he stressed the need for both governments and the private sector to have sufficient buffers.
US sanctions on Iran
Foreign Minister Qureshi also spoke to his German counterpart, Heiko Maas, and urged all the countries to forge unity to overcome the common challenge of coronavirus pandemic.
“Coronavirus is a common threat and all regional countries should demonstrate unity to win this fight,” he said.
He expressed concern over the rising COVID-19 cases in Germany and Iran. During the conversation, Qureshi repeated his call on the international community, including the US, to lift economic sanctions on Iran to enable it to fight the contagion.
Islamabad has stepped up its diplomatic efforts for lifting of the US sanctions against Tehran after Iran’s President Hassan Rouhani wrote a letter to PM Imran, asking him to play his role in this regard. According to Tehran, sanctions have badly hampered its fight against the coronavirus. Agencies