UN Says Pakistan To Be ‘Hardest Hit’ By Coronavirus Pandemic
The UN Conference on Trade and Development (UNCTAD) has listed Pakistan among the countries which would be the worst affected by the coronavirus pandemic, demanding efforts for their relief.
In a new report, the UN body said that the developing countries need a support package worth $2.5 to deal with the impact of the pandemic.
The report further says that economies of these countries will tale ‘enormous hit’ from high capital outflows, in addition to facing a loss of export earnings due to decreasing commodity prices and currency depreciations. The overall impact is said to be worse than the 2008 crisis.
Titled ‘The Covid-19 Shock to Developing Countries’, the report recommends measures including a $1 trillion liquidity injection and a $1 trillion debt relief package, another $500 million for emergency health services and other programmes.
Further, UNCTAD Director of Globalisation and Development Strategies has said that sub-Saharan African countries will be among the hardest hit, including Pakistan and Argentina. He said that these findings take into account a ‘frightening combination’ of factors, including mounting debts, a potential deflationary spiral and a major health crisis.
Kozul-Wright said that the pandemic would cause a $2-$3 trillion financing deficit over this year and next.
“The international institutions have to take these sorts of proposals very, very seriously as it’s the only way that we can see to prevent the damage already taking place and which will get worse,” the UNCTAD director stressed.
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