Pakistan’s Prime Minister Imran Khan has been whining ever since the outbreak of the virus as he claimed that Pakistan must be provided with debt relief since it’s a poor nation. Imran Khan and his government has totally turned a blind eye to the plight of Pakistan as it struggles to contain the virus and instead used this as an opportunity to secure aid and debt relief. While Imran Khan has been somewhat successful in getting loans and aid, the IMF has not included Pakistan in its immediate debt relief granted for 25 countries, despite the fact that Imran Khan emerged as a strong proponent of debt relief.
The IMF has recently approved a debt relief for 25 countries with the intention to help the countries free up the funds to fight the pandemic under the under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT). Most of the African countries like Sierra Leone, Burkina Faso, Central African Republic, Mozambique, Chad to Afghanistan have been granted this approval much to the dismay of Pakistan.
Now it’s really possibility that the IMF would grant a debt relief to Pakistan at a later stage as looking at the country’s finances, Pakistan will end up becoming a colony of its creditors like China. Recently, the World Bank Group and International Monetary Fund in a joint statement called on the official bilateral creditors to suspend debt payments from the International Development Association (IDA) countries that request forbearance in the wake of the pandemic. Pakistan is also among the list of 76 countries that are eligible to receive the IDA resources under concessionary lending.
Earlier in March, Imran Khan said, “The world community has to think of some sort of a debt write-off for countries like us, which are very vulnerable, at least that will help us in coping with (the coronavirus).” He further warned that if the pandemic hits Pakistan, any hopes of lifting the country’s ailing economy would be permanently vanquished as exports would fall off, unemployment would soar and an onerous national debt would become an impossible burden.
But the fact that the IMF didn’t approve Pakistan’s request is a tight slap on the Imran Khan government as it has completely destroyed Pakistan’s economy. During Imran Khan’s first year in power, Pakistan broke all records as it borrowed a whopping Rs 7.5 lakh crore. During the period of August 2018 to August 2019, the foreign debt incurred by the Imran Khan government stood at PKR 2,804 billion. As of June 2019, Pakistan’s total public debt stood at PKR 31.786 trillion.
What’s more concerning is the fact that the Imran Khan government has projected public debt to increase by 47 per cent to PKR 45.57 trillion in five years.
At present, Pakistan has incurred an external debt of more than US$ 100 billion. The fact that almost the entire world is in some form a lockdown, will further exacerbate the condition of Pakistan’s economy.
Pakistan as a nation will completely falter if there are no debt-write offs granted to it which has prompted Imran Khan emerging as the first and the loudest voice pleading for debt relief.
Recently, Imran Khan was panned left, right and centre as he wore an attire which is unbecoming of a head of state as he in his ragged sweater pleaded to the international community to grant debt relief.
My appeal to the international community, the UNSG & international financial institutions to respond positively to the dilemma confronting developing countries in the face of the COVID19 pandemic. #Global_Initiative_Debt_Relief pic.twitter.com/EfydRhfZhc
— Imran Khan (@ImranKhanPTI) April 12, 2020
“The Global Initiative on Debt Relief will bring together stakeholders on a platform to promote coordinated health and economic response,” said Khan on a video message.
Imran Khan has successfully dug the grave of an already ailing economy as Pakistan is now at the mercy of its bilateral creditors and international organisations like the IMF for protecting its sovereignty. In the absence of any debt relief for Pakistan will effectively lead to its colonisation by its creditors, with China leading from the front.
