Pakistan lobbies hard for debt-relief!

On March 17th 2020, when Pakisan had less than 500 cases Prime Minister Imran Khan appealed for debt relief. Either, Pakistan could see foresee collapse the economy or it was legitimate diplomatic play.

Since then, the testing per day has gradually increased & expected to peak end May & June. Meanwhile, Pakistan has secured $1.4bn from IMF and perhaps, another $2bn from World Bank & ADB.

Pakistan is asking for more. Country has to pay $1.8bn by December excluding more than $1bn to Saudi & China. Also a promise of no new concessionary loans to reduce to moral hazard of debt-addiction is required. The case is building up.

The diplomatic push is aggressive as Imran Khan contacts US, Germany, Canada, China, UN, Bill Gates, Saudi Arab, Qatar, UAE, UK, Ethiopia, Iran, Egypt, Turkey, Bahrain, Kuwait and whatnot. Pakistan & other countries will get debt-relief amid worst economics collapse in a century.

If Pakistan gets a relief, assurances would be asked to not bail-out Chinese bond-holders as US criticised. Similarly, the money should be effectively used to enhance Pakistan’s capacity to fight pandemic only. This should buy time to focus on exports & exports! Plan for 10 years not re-election. Re-shape into knowledge economy.

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