Pakistan urges Germany to play key role on debt relief for developing world

PM Imran calls Chancellor Merkel, highlights economic challenges faced by developing countries amid COVID-19 outbreak

KARACHI: Days after his call for a ‘Global Initiative on Debt Relief’ for developing countries to cope with the novel coronavirus crisis, Prime Minister Imran Khan on Tuesday held a telephonic conversation with German Chancellor Angela Merkel, seeking her leadership role for implementation of the sought-after move.

The premier emphasised that COVID-19 pandemic has unfolded an unprecedented global health and economic crisis, “where developing countries will be hit harder due to lack of fiscal space and debt servicing”.

PM Imran told the German chancellor, “People in the developing world face a starker choice: death by COVID-19 or by hunger.”

Pakistan seeks rollover of half of $28b debt

The prime minister’s telephonic conversation with the German leadership comes as Pakistan has also been facing serious economic challenges in the walk of COVID-19 countrywide lockdown.

Today, PM Imran also announced that the lockdown imposed to contain the spread of coronavirus in the country has been extended for two more weeks with some relaxation.

Currently, Pakistan’s tally of COVID-19 patients has surpassed 5,800 with over 100 deaths.

During the call, the prime minister underscored that ability of the developing countries to cope with the coronavirus challenge would depend on providing urgent debt relief, at their request, and without onerous conditions.

PM Imran hoped that alongside the UN Secretary General, countries like Germany would provide leadership to this issue, in the forthcoming G-20 Finance Ministers Meeting as well as Spring Meetings of the IMF and the World Bank.