On Monday, UN Secretary-General António Guterres urged the G-20 and international financial institutions (IFIs) to aid Pakistan with its post-flood reconstruction and rehabilitation efforts by reducing Pakistan’s debt.
At a joint press conference with Prime Minister Muhammad Shehbaz Sharif, the UN Secretary General offered a debt exchange, substituting the payment of debt with investments in the rehabilitation of the flood-affected people of Pakistan.
According to the most recent estimates, Pakistan incurred losses of more than $30 billion, according to Prime Minister Shehbaz Sharif, who is in Sharm El Sheikh for the COP27 session.
According to the UN secretary-general, Pakistan is a middle-income nation that does not receive the debt relief or preferential assistance it needs to combat the negative effects of climate change.
He urged the G-20 nations and the IFIs to develop a system for debt relief for middle-income nations like Pakistan. He emphasized the necessity of developing an institutional finance framework and outlining a clear plan of action to deal with the crisis.
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