Pakistan to benefit from the G20 debt relief plan

The G20 grouping held a meeting via video conferencing on April 15. The G20 group is currently lead by Saudi Arabia who hosted the meeting from Riyadh. The meeting was chaired by Saudi Finance Minister Mohammed Al-Jadaan.

The G20 group has urged the World Bank and the International Monetary Fund (IMF) to extend debt relief to the poorest countries. The request has been extended so as to aid the poor nations in handling the COVID-19 outbreak.

Under the decision, all the 76 countries grouped under the World Bank’s International Development Association (IDA) will be eligible for debt relief under the proposed plan. The suspension period for debt relief will start from May 1 and continue till December 1, 2020.

Saudi Finance Minister Mohammed Al-Jadaan said, this means “poor countries don’t need to worry about repaying over the course of the next 12 months”.

Pakistan too is a member of the World Bank’s International Development Association (IDA) and the IMF report shows Pakistan has $12.731 billion of external debt repayment obligations in FY2021 that could be subject to treatment under the debt relief plan.

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