ISLAMABAD: Pakistan has plans to intensify efforts for debt restructuring and relief amid growing economic challenges due to the global pandemic.
The Covid-19 pandemic has put significant amount of additional pressure on Pakistan’s struggling economy. The major setback is expected from the fall in exports due to the scaling down of international demand and the reduction in remittances from overseas. Contraction in large-scale industrial production, and services and agriculture sector is also being expected, which would significantly bring down the projected growth rate of the economy. Moreover, the government has announced a massive relief package of nearly Rs1.13 trillion.
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Although the decline in oil prices provided some cushion it may not be enough to bear the entire impact.
Pakistan had in view of emerging situation proposed debt relief and restructuring for all struggling economies so that they could spend their resources for saving lives and providing relief to their masses.
Foreign Minister Qureshi carried out an extensive diplomatic outreach on this issue. He says that Pakistan’s call for easing the debt burden has found significant support.
