Pakistan to receive UN policy memo urging suspension of international debt repayments amid flood crisis
A United Nations policy memo urged Pakistan to suspend international debt repayments amid the flood crisis.
The memorandum, which the UN Development Program will share with Pakistan’s government this week, states that the country’s creditors should consider debt relief so that policymakers can prioritize financing its disaster response over loan repayment.
Pakistan has earlier estimated the damage at $30 billion, and both the government and UN Secretary-General Antonio Guterres have blamed the flooding on climate change.
The memo further proposed debt restructuring or swaps, where creditors would let go of repayments in exchange for Pakistan agreeing to invest in climate change-resilient infrastructure.
Floods have affected 33 million Pakistanis, inflicted billions of dollars in damage, and killed over 1,500 people – creating concern that Pakistan will not meet debts.
