Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will bring forward legislation to protect (a) Pakistan and (b) other countries affected by climate disasters from being sued in English courts for outstanding debts.
The Government expresses deep concern and condolences for the severe humanitarian and economic impact of flooding in Pakistan. When countries request a debt treatment, the UK is committed to ensuring the private sector participates fully by providing debt relief on comparable terms to that of official bilateral creditors, such as the UK.
The Government does not currently intend to pursue a legislative approach that would force private lenders to participate in debt relief initiatives. Any legislative approach would need to address a number of challenges. For example, legislating may increase the cost – or reduce the availability - of finance for low-income countries.