Pakistan is among the countries which could be hardest hit by the global pandemic of coronavirus, as revealed in the UN Conference on Trade and Development (UNCTAD) on Monday.
In a new report, UNCTAD said that the developing countries that as per the UN body’s tally number 170 will need a support package this year of $2.5 trillion to go through the economic crisis caused by the pandemic.
The economies of the developing countries will take “enormous hit” from high capital outflows, lost in export earnings due to declining commodity prices and currency depreciation. The overall impact of this situation will be worse than the 2008 crisis.
The report named ‘The Covid-19 Shock to Developing Countries’ said that the measures needed in this situation included a $1 trillion liquidity injection and a $1 trillion debt relief package along with$500 million for emergency health services and programs related to it on top of capital controls.
Director of globalisation and development strategies at UNCTAD Richard Kozul-Wright said, “Sub-Saharan African countries will be among the hardest hit alongside others, including Pakistan and Argentina.”
As per Kozul-Wright the coronavirus will approx. cause $2-$3 trillion financing deficit over this year and next considering the surging debts a potential deflationary spiral and a major health crisis,
UNCTAD director said, “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.”
Kozul-Wright said, “If G20 leaders are to stick to their commitment of ‘a global response in the spirit of solidarity,’ there must be commensurate action for the six billion people living outside the core G20 economies.”