Cash-strapped Pakistan on Thursday termed as "historic and timely" the G-20 countries' decision to halt debt payments by the world's poorest nations struggling to fight the coronavirus pandemic.
Foreign Minister Shah Mahmood Qureshi during a press conference here said the decision would provide fiscal space to these countries, including Pakistan, to cope with the situation arising out of the coronavirus pandemic, as the relief was both for interest payment and the principal amount.
"The developing world lacks fiscal space and a proper health system. Therefore, the most appropriate response that other countries can give at the moment is granting debt relief," he said, terming the decision as "historic and timely."
The Group of 20 nations on Wednesday announced support or a temporary halt to debt payments by the world's poorest nations as they struggle to deal with the coronavirus pandemic.
Finance ministers of the G-20 group of major economies, which includes the US, China, India and others, said they will immediately put on hold poor countries' obligations to service debt they owe.
Seventy-six countries including Pakistan will simultaneously benefit from this debt relief and its application will start from the May 1, Qureshi said.
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He said the relief would have substantial impact and provide much-needed fiscal space to Pakistan which will be used to help the poor people who were hit by the coronavirus.
He claimed that the announcement came at the back of demand by Prime Minister Imran Khan.
He said Prime Minister Khan on April 12 had appealed to the leaders of rich countries, the UN Secretary General and heads of financial institutions to give debt relief to developing countries such as Pakistan so that they could combat COVID-19.
Qureshi claimed that it was the fourth global initiative that Prime Minister Khan has initiated.
His drive against climate change on global forums, his campaign against eliminating Islamophobia, action against corrupt and illicit financial flows, and now his initiative against debt reliefIn less than two years, the prime minister has taken on four global causes and the Foreign Office has played its part in helping realise them, he said.
He said COVID-19 is a global threat and Pakistan took part in the SAARC video conference on COVID-19 hosted by India regardless of the fact that New Delhi always tried to undermine the regional peace process.
On US President Donald Trump's decision to halt the funding to World Health Organization, Qureshi asked the US to review its decision to halt funding for the UN agency as it would only add to the difficulties of the world body.
Qureshi had earlier called his Chinese counterpart Wang Yi to seek China's support for the global initiative to give debt relief to developing countries.
The deadly disease, which originated in China late last year, has infected over 2,072,000 people and killed 137,600 people across the world.
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