Pakistan to lead new 34-nation global debt coalition

A new coalition of 34 heavily indebted nations has been established to address mounting global debt challenges. Supported by the United Nations Trade and Development (UNCTAD), the alliance aims to provide a unified voice for developing countries struggling with financial liabilities. Pakistan has been appointed to lead the group, with Finance Minister Muhammad Aurangzeb named chairman for the upcoming year. The leadership transition follows an interim period led by Egypt.

Separately, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has urged the United States and other wealthy nations to take urgent action to rein in rising debt levels. Georgieva warned that economic growth alone is insufficient to address massive national debts, such as the United States' $40 trillion debt, and emphasized the need for fiscal consolidation and deficit reduction.

The IMF noted that rising interest rates and global inflation are placing historic burdens on the world's poorest nations, forcing difficult choices between social support and debt repayment obligations. Experts warned that fiscal indiscipline in major advanced economies has global repercussions, affecting the stability of the broader international financial system.