ISLAMABAD: Finance ministers and central bank governors from developing nations are set to launch a new ‘Borrowers’ Platform’ on April 15 in Washington during the IMF-World Bank Spring Meetings, aiming to strengthen debt management and cooperation among borrowing countries.
Pakistan and Egypt will jointly lead the initiative, which seeks to address growing debt challenges faced by developing economies. The platform is designed to provide a dedicated space for countries to collaborate, share knowledge, and collectively represent their interests in global financial discussions.
The initiative comes at a time when rising debt burdens are placing significant pressure on public finances across developing nations. Many countries are allocating increasing portions of their revenues to debt servicing, leaving fewer resources for essential services and development priorities.
The platform will focus on improving debt transparency, enhancing public debt management, and supporting sustainable financing. It also aims to boost South-South cooperation and provide technical and advisory support to participating countries.
Recent data highlights the scale of the issue, with developing countries’ external debt reaching $11.7 trillion in 2024. A substantial share of government revenues is being spent on interest payments, with some nations allocating more funds to debt servicing than to health and education.
The initiative is expected to strengthen coordination among borrowing countries and promote a more balanced global financial system that better supports development goals.
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