All Hell Will Break Loose Without Debt Deal: Shehbaz Sharif

Pakistan’s Prime Minister Shehbaz Sharif has pleaded for urgent debt relief from rich nations. Floods exacerbated by climate change killed 1,600 people and displaced millions in Pakistan. One third of the country is still underwater with bringing one pandemic after another.

PM Nawaz: Unless we get substantial relief how can the world expect us to stand on our own feet? He pointed out the vast gulf between what Pakistan requested in aid and what was made available. “God forbid this happens, all hell will break [loose],” he cautioned.

Pakistan’s Prime Minister Nawaz Sharif has said that talks with China will begin after the Paris Club. Pakistan owes China $30 billion, or roughly one-third of its total external debt. It recently received a $1.1 billion loan from the International Monetary Fund (IMF).

The Asian Development Bank has cut its growth forecast for Pakistan, citing floods and political crisis. The floods have occurred as the Pakistan rupee approaches a record low. A report by Barclays Bank expects Pakistan’s large financing gap in FY23 to worsen the already challenging outlook.