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Mr. Chairman,
Pakistan associates itself with the statement made by Algeria on behalf of the Group of 77 and China. In our national capacity, I would make a few additional points.
Mr. Chairman,
The global economic and financial situation remains fragile and faced high risks due to policy uncertainties. The resilience of the developing world is running thin as the advanced economies have not been able to generate growth. Despite the increasing financial and economic turmoil, we are unable to undertake necessary measures to improve the functioning of the international financial system. The continued volatile global economic situation is feeding into increasing trends of low international trade and high debt vulnerability in all countries, irrespective of their income level or geographical situation. Pakistan, therefore, attaches high importance to the matters under consideration of this Committee today.
Mr. Chairman,
There is a need to focus on the factors primarily responsible for the current difficulties. We also need to ensure that the international financial system plays its requisite role in efficient mobilisation and allocation of resources for economic growth and sustainable development. In particular, it must support efforts of the developing countries. We, therefore, should control the irresponsible finance and make finance serve the real economy to facilitate economic growth that creates jobs and builds productive capacities.
It is also essential to work with greater urgency and seriousness on increasing voice and participation of all developing countries in the governance of international financial institutions especially the World Bank and the International Monetary Fund. This should be on the basis of equality and fairness not economic weight. We must also enhance the capacity of these institutions; in particular to enable them to serve, timely and efficiently, the needs of the developing countries.
Mr. Chairman,
Despite the crucial role of trade in development, we have not been able to overcome our differences. We are witnessing increasing tendencies towards protectionism. The major trading countries should provide leadership and work towards the much required development oriented conclusion of the Doha round of trade negotiations. While remaining fully committed to the development aspect of the Doha round, we may test new approaches to move forward and further strengthen the rule based multi-lateral trading system.
We would also like to stress the importance of aid for trade to enable the developing countries build their productive capacities and move up the value chain.
Mr. Chairman,
We are aware of the complications with regard to debt relief. However, in our view consolidating the debt relief provided to countries covered under current initiatives and extending it to the developing countries not eligible under existing initiatives are critical matters. We, therefore, suggest that this be discussed on priority. Furthermore, we consider the increasing use of grants and concessional loans, as the preferred modality of financial support, will help improve debt sustainability of developing countries.
Moreover, we should also begin serious discussions on instituting a suitable mechanism to address the issue of sovereign debt restructuring - the need of such a mechanism has been convincingly highlighted by the ongoing crisis in the Euro Zone. In the case of developing countries, establishing this mechanism is all the more important and urgent.
Mr. Chairman,
We firmly believe that given its unquestioned legitimacy and representative character, the United Nations should continue to lead our efforts on correcting shortcomings in order to strengthen the international financial, economic and trading systems. Pakistan looks forward to contribute to the work of this Committee on these important matters and remain committed to foster a genuine partnership.
Thank you.