EpaperKH_2020-06-11

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CMYK

Thursday, 11 June, 2020 I 19 Shawwal-ul-Mubarak, 1441 I Rs 15.00 I Vol X No 342 I 12 Pages I Karachi Edition

Pakistan gets relief after susPension of debt service Payments g

PARIS ClUB AGREES TO SUSPEND PAYMENTS FROM PAKISTAN, ETHIOPIA, CONGO AS PART OF G-20 DEBT RElIEF DEAl

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ExPERT SAYS RElIEF TOO SMAll UNlESS ‘CHINA AND MUlTIlATERAl AND PRIvATE CREDITORS’ STEP UP EFFORTS

ISLAMABAD aGeNCIes

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HE Paris Club of creditor nations have agreed to suspend debt service payments from Chad, Ethiopia, Pakistan, and Republic of Congo as part of a G20 debt relief deal, the group said. The Group of 20 leading economies and the Paris Club, an informal group of state creditors coordinated by the French finance ministry, agreed in April to freeze debt payments of the 77 poorest countries this year to free up cash to fight the coronavirus pandemic. The latest agreements bring to 12 the number of countries to receive debt relief under the deal with a total of $1.1 billion in debt deferred as a result, the Paris Club said, adding 30 countries had requested to benefit. Earlier in April, the Paris Club had agreed to freeze the debt payments of the 77 poorest countries in 2020 to free up cash for them to fight the coronavirus pandemic. “Debtor countries saw that others were using it, so that reduced the fear and stigma,” Chairwoman Odile RenaudBasso told reporters in a telephone briefing on Wednesday. “We see today an acceleration in the number of demands.” The club has held talks with ratings companies to avoid any action against countries participating in the initiative, Renaud-Basso said. China is implementing waivers individually with each country, but questions remain on which obligations can be delayed, she was quoted by Bloomberg as saying. “Paris Club been quickest and set a good example to other creditors. But speed due to it being only a small creditor,” Gregory Smith, a strategist with london-based M&G Investments, said on Twitter. “Unless China steps up, plus in some cases multilateral and private creditors, relief is too small.”

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ISLAMABAD Pakistan in May had formally requested members of G-20 nations for debt relief with a commitment of “not contracting new nonconcessional loans, except those allowed under the International Monetary Fund (IMF) and World Bank guidelines”. The formal requests were sent to individual countries under the G-20 Covid-19 Debt Service Suspension Initiative. Pakistan owes $20.7 billion to 11 members of the Group of 20 rich nations. Out of this sum, an amount of $1.8 billion would mature by December 2020, including the interest payments, according to the economic affairs ministry. In May, Prime Minister Imran Khan had urged the global community to provide debt relief to the developing world, especially the sub-continent, saying several countries in the developing world do not possess the fiscal space to divert resources to the healthcare sector amid a deadly pandemic. Addressing a session of the World Economic Forum (WEF) via video link, the prime minister had said he talked to several leaders of the developing world who were facing the same problem as Pakistan or any other developing country. “The G20 has come up with a debt relief plan but it needs more details and work. let me just put it this way: many of the de-

Pakistan

CONFIRMED CASES:

117,172

DAY'S DEATH TOLL:

101

RECOVERED:

DEATHS:

SINDH:

PUNJAB:

36,308 2,317 43,460

KP:

BALOCHISTAN:

AJK/GB:

ISLAMABAD:

15,206 444/974

MIRzA SAYS UN BODY vIEWS SITUATION THROUGH HEAlTH lENS, WHIlE PTI GOvT IS FOllOWING ‘HOlISTIC’ STRATEGY staff report

coronavirus in

43,790

Govt plays down WHO warning as Pakistan reports 6,000 new infections

7,335

5,963

veloping countries face this situation where, because of their debt-servicing, their fiscal space has contracted and they are unable to cope with this challenge of health facilities. “The reason why there should be a debt relief and the G20 is looking into it is because we need to divert those resources to health and also to environment and, unfortunately, that space is not there,” he added. On April 15, the G-20 nations had announced a freeze on debt repayments from 76 countries, including Pakistan, during May to December 2020 period, subject to the condition that each country would make a formal request. On April 16, an IMF report had estimated Pakistan’s post-Covid-19 external financing requirements at $25.8 billion with a financing gap of $2 billion. For the next fiscal year, the IMF projected Pakistan’s gross financing requirements at $29.3 billion and a financing gap of $1.5 billion.

ADB approves $500m loan to Pakistan to aid Covid-19 response STORY ON PAGE 09

Even though Pakistan reported over 6,000 Covid-19 cases on Wednesday, Prime Minister’s Health Adviser Dr zafar Mirza played down the recommendations by the World Health Organisation (WHO) for being just ‘health-focused’. In the wake of the rise in the infection across the country, the WHO had suggested that the Punjab government may impose a strict, intermittent two-week quarantine to stem the spread of the pandemic. In a letter to Punjab Health Minister Dr Yasmin Rashid, WHO Country Head for Pakistan Dr Palitha Mahipala had stated that the country does not meet any of the organisation’s six technical criteria for easing a lockdown as was done on May 1 and then on May 22. However, the warning fell on deaf ears. Mirza responded to the report, saying that the UN body was viewing the situation through a “health lens” whereas the government was following a “holistic” strategy to deal with the threat. “The government’s choice of policies has been guided by the

Covid-19 dashed hopes of economic recovery: govt ISLAMABAD staff report

Prime Minister Imran Khan on Wednesday said the government was focussed on uplifting the health and agriculture sectors in the wake of coronavirus and locust plague in the country. Chairing a meeting of the National Economic Council (NEC) ahead of the budget, the PM said the Pakistan Tehreek-eInsaf (PTI) will also prioritise the sectors that would generate jobs for the youths. Speaking about the state of the economy, Imran said that the ruling party took effective measures to revive the economy; however, with the emergence of Covid-19, the economy has once again come under increasing strain. According to a press release by the Prime Minister’s Office, the meeting approved the gross domestic product (GDP) growth target for FY 2020-2021, along with sectoral growth projections for agriculture, industry and services. The NEC also reviewed the Public Sector Development Programme (PDSP) for the current fiscal year and the proposed development outlay for FY 2020-2021.

best evidence available about the disease spread and our best assessment of the fast deteriorating socioeconomic conditions in the country,” said Mirza. He recalled that a ministeriallevel meeting took place at the National Command and Operation Centre (NCOC) every day in which the government with the help of experts “reviewed the disease data and trends very minutely and took a holistic view of the situation along with the provinces and developed recommendations”. The adviser further recalled that Pakistan was a low middle-income country where two-thirds of the population was dependent on day-today earnings. “[The government] has made best sovereign decisions in the best interest of our people,” he said. He added, however, that the government has to make “tough policy choices” to maintain the balance between lives and livelihoods. He said that although the lockdown had been eased, there was an increased focus on enforcing the standard operating procedures (SOPs) issued by the government to prevent the spread of the virus.

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more inside

PHC grills NAB for its 'selective' brand of accountability STORY ON PAGE 03

ECP gives Bilawal clean chit in assets case STORY ON PAGE 02 The PM also emphasised the need for ensuring close and seamless coordination between the federal and provincial governments during the finalisation and implementation of the development projects. He underscored the need for employing technology to monitor the progress of the ongoing projects. He was there was a need for ensuring public participation in the development process through the provision of realtime information and getting their feedback on the implementation status of the projects. He also directed that the NEC meet biannually to review the progress of PDSP projects. According to the statement,

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the meeting was informed that this is the first time that PDSP only includes those projects that have already been approved by the relevant forums. “This will ensure fast implementation of the projects and optimum utilisation will be carried out, leading to economic growth,” it said.

CONTINUED ON PAGE 03

ECC approves Rs480m risk allowance for healthcare workers STORY ON PAGE 02

5 Kashmiri youth martyred in Shopian STORY ON BACK PAGE

Sugar mill association files petitionagainst inquiry commission STORY ON PAGE 09


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