Pakistan, among other developing countries, is likely to save $2.4 billion in the ongoing year through participation in a debt relief program, the global lender has revealed.
In total, the developing countries will save up to $12 billion (9.71 billion pounds) owed to sovereign and other lenders this year.
In its report, the World Bank has estimated that Pakistan is the second country after Angola (with $3.4 billion savings) to benefit from the Debt Service Suspension Initiative (DSSI) from the sovereign creditors. It is followed by Kenya with $802 million, according to the data.
The DSSI has the support of the G-20 countries, the World Bank, the IMF and the Paris Club of sovereign lenders. Unlike some other debt relief programs, DSSI offers only short-term relief as it postpones payments until the end of the year but does not cancel them outright.
If savings are compared with the gross domestic product, Bhutan would reap the most benefits from the plan with 7.3% of GDP savings, followed by Angola at 3.7% and Djibouti at 2.5%.
The World Bank and IMF officials had warned that the pandemic will strike the developing and emerging countries hard owing to a high level of debt, a sharp drop in oil and other commodity prices, and broken healthcare systems.