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Flood-Hit Pakistan Should Seek Loan Rejig, UN Says – FT

Pakistan could also forgo loan repayments to invest in climate-change resilient infrastructure instead, the UNDP said

A woman taking refuge is seen with her belongings, amid flooding during the monsoon season in Sohbatpur, Pakistan, on August 29, 2022. Photo: Amer Hussain, Reuters.


The United Nations said Pakistan should seek to restructure existing loans and suspend debt repayments after being hit by severe floods and humanitarian crisis, The Financial Times reported.

Suspended repayments could “free up fiscal space for urgent disaster response and recovery,” a draft paper from the UN Development Programme said in the report. Pakistan could also forgo repayments to invest in climate-change resilient infrastructure, it added.

Read the full report: The Financial Times.



Read more:

China Comes Through with $2.3 Billion Loan to Pakistan

Pakistan Floods Damage Tops $10 Billion, Minister Says

Pakistan Hopes to Appease IMF With Tough New Budget



Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.


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