Home Borrower Relentless borrowing poses economic challenges, warns UNDP – Newspaper

Relentless borrowing poses economic challenges, warns UNDP – Newspaper

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ISLAMABAD: A new report on Pakistan’s private investments for sustainable development warns that continued borrowing from multilateral and other sources poses all sorts of economic and political challenges as external development grants rapidly dwindle.

The situation calls for exploration of resources from the private sector, as well as non-traditional regional partners, the ‘Pakistan SDG Investment Report 2021‘ published by the United Nations Development Program (UNDP). The report was launched on Wednesday at a ceremony in Islamabad presided over by Foreign Minister Shah Mahmood Qureshi.

The first report of its kind on the country, the publication provides an overview of Pakistan’s policy priorities, regulatory environment and private sector development context.

The report notes that the country aims to create strategic partnerships with international investors seeking impact investments, particularly in the areas of climate change and climate finance, SMEs and industrial development, ICT, health and education, and transport and logistics.

“Although innovative partnerships appear to be the way forward, with some major new donors like China, Saudi Arabia, Qatar and the United Arab Emirates already providing funding to Pakistan’s social sectors, private investors seeking ‘Social Impact’ should therefore consider partnering with regional development partners to ensure targeted transactions and opportunities for mutual learning,” he adds.

In a message in the report, Prime Minister Imran Khan urged private investors to take advantage of the country’s competitive advantage and favorable business environment and earn good returns while supporting sustainable development and climate action.

The report suggests that risk guarantees and receivables securitization could provide additional comfort to financial market participants.

The UNDP report added that financing for development is one of the biggest challenges facing developing countries and, in the case of Pakistan, the pressure to provide jobs and quality services to a young population, as well as building safety nets for the poorer segments of society, requires a much larger pool of funding than is available through the state.

Posted in Dawn, January 27, 2022