Developing countries: Part of $160bn WB package should be available for DSSI plan: Hafeez

ISLAMABAD: Adviser to the Prime Minister on Finance, Dr Abdul Hafeez Shaikh Monday said the government was paying focus on cooperation between the public and the private sector, and wanted that an appropriate portion of $160 billion World Bank package should be available for Debt Service Suspension Initiative (DSSI) programme to help developing countries.

While speaking at a webinar organised by the Asian Development Bank (ADB) and the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the adviser not only emphasised the need for collective efforts to lessen the problems of Covid-19 but also stated the debt relief by the developed countries for the developing one would be an immediate relief at this point in time.

The adviser said that Pakistan acknowledged the debt relief provided to Pakistan by Group 20 countries as well as the International Monetary Fund (IMF) and others.

He also emphasized the need for global cooperation to deal with the challenges faced by the developing and low-income countries in the wake of the Covid-19 and stated that the world was facing more serious challenge than those were due to the recession of the 1930s.

Shaikh further stated that Pakistan had also been affected by the coronavirus and the government had taken several steps to deal with the problems and protect the people and economy.

The advisor said that the government launched corona package to provide relief to the people and the business community.

He recounted cash transfer and other incentives provided to protect people and businesses.

The adviser said that Pakistan was working with the Netherlands and the African Union for preparing recommendations to help the vulnerable countries for delay in repayment of debt, and maintain credit rating of affected countries.

He said that the World Bank for the next 15 months prepared $160 billion assistance programme and an appropriate portion of it should be diverted to help developing countries through the DSSI programme.

To a question, he said that there was a need to tap the potential of international as well as domestic markets.-

Copyright Business Recorder, 2020