LAHORE: The United Nations Conference on Trade and Development (UNCTAD) has highlighted the growing debt challenges facing developing countries, revealing that approximately 3.7 billion people live in countries where interest payments on public debt exceed government spending on either health or education.
In its latest newsletter, UNCTAD underscored the importance of international cooperation to help developing countries manage their debt burdens, strengthen financial capacity and address mounting economic pressures.
The agency also highlighted progress in the establishment of the Borrowers’ Platform, which has formally brought together 31 developing countries to promote cooperation and knowledge-sharing on public debt management.
The platform aims to enable borrowing countries to exchange experiences, share expertise and strengthen their capacity to manage debt-related challenges. It is also intended to amplify their collective voice in international financial discussions.
UNCTAD’s initiative comes amid continuing concerns over the impact of debt-servicing costs on public finances, particularly in developing economies where governments face difficult choices in allocating resources to essential services.
High interest payments can limit the fiscal space available for investment in healthcare, education, infrastructure and sustainable development, making effective debt management increasingly important.
Through the Borrowers’ Platform, participating countries are expected to benefit from peer learning, practical cooperation and the exchange of policy experiences relating to debt management.
The initiative is designed to strengthen coordination among borrowing countries. It is not intended to serve as a collective debt-restructuring or debt-bargaining mechanism.
UNCTAD continues to highlight the need for international cooperation and practical solutions to help developing countries address debt vulnerabilities and advance their development priorities.
Reported by: Mirza Maqbool Baig I Senior Reporter I Journalist
