Pakistan has cautioned that several emerging nations face an urgent risk of economic collapse as a result of their rising debt levels.
Pakistan’s Deputy Permanent Representative to the United Nations, Mohammad Aamir Khan, stated on Friday that developing nations should be supplied with budgetary resources and measures to reduce borrowing costs.
He delivered these statements during his Friday address to the 61st session of the United Nations Commission on Social Development.
In addition, the official asked international financial institutions to assist developing nations in attaining their objectives and making debt repayments despite their current financial hardships.
Mr. Khan cautioned that, if allowed to occur, the economic collapse would bring “huge human miseries.”
Despite tremendous advances in human and social development, the world community has been unable to eradicate inequality. As stated by the Pakistani envoy at the conference.
“Today, the epidemic of inequality is wreaking more havoc on the lives and livelihoods of people than any other crisis in history,” he said.
Furthermore, there is an impending risk of debt deficits and economic collapse in several nations, resulting in immense human misery.
Ambassador Khan stated that Pakistan was devastated by a flood last summer. Causing the government to provide cash relief to two million households.
“Despite our financial limitations, we raised $1.5 billion for emergency relief,” he explained.
He emphasized the necessity to offer emerging nations debt relief and restructuring.
After the Covid-19 outbreak, the nine-day conference at the UN headquarters in New York is examining several options for “providing full and productive work for all.
Lachezara Stoeva, the chairperson of the Economic and Social Council of the United Nations, emphasized the need to prioritize people by preparing young people “for the labor market through education, training, and early work experience.”
Despite recurrent debt rescheduling, developing countries continue to pay out more each year than they get, according to a recent report by an independent UN expert.
“The growing debt burden of the most indebted developing nations is unsustainable. It is one of the greatest hurdles to sustainable development and the eradication of poverty, the research cautioned.
