Pakistan is one of 54 countries in desperate need of debt relief, having suffered over $30 billion in damages as a result of recent floods. The United Nations warned that developing countries were facing a rapidly worsening debt crisis and the risks of inaction are dire. Report released ahead of meetings of IMF, World Bank and G20 finance ministers in Washington.
Pakistan has an average credit rating of 6 (‘highly speculative’) and gross public debt is 74 percent of GDP. Six percent of the population in Pakistan is estimated to live in extreme poverty. 46 of the 54 countries had accumulated public debt totaling $782 billion by 2020.
The most at risk are Sri Lanka, Pakistan, Tunisia, Chad, and Zambia. Current market conditions could pave the way for a debt deal, UNDP says.