The international entity said it provided financing to 96 countries.
Qatar has pledged 20% of its Special Drawing Rights (SDR) to the International Monetary Fund (IMF) in a bid to help low income countries fight poverty and consequences of climate change.
The major announcement was made by Qatar’s Minister of Finance Ali Al Kuwari ad the IMF’s Managing Director and Chairwoman Kristalina Georgieva on the sidelines of the Qatar Economic Forum (QEF), held in Lusail between Tuesday and Thursday.
Speaking to Doha News following the announcement, the IMF chief said
Qatar is a “country that shows tremendous solidarity with those less fortunate.”
Al Kuwari said the the pledge would allow low income countries to fight poverty, boost their economic growth and help build a resilient economy, while creating much needed job opportunities.
“The global economy faces unique uncertainties including geopolitical tensions, high inflation, increasing debt vulnerabilities, rising poverty and inequality,” the Qatari minister noted during the announcement.
Through its pledge, the Gulf state would also support the IMF’s Poverty Reduction and Growth Trust and its Resilience and Sustainability Trust (RST).
“The two greatest challenges the world faces today is reducing poverty and dealing with the risks of climate change. It is exactly those two challenges that the pledge Qatar so generously made that are going to be addressed with the instrument the IMF has created over the years,” Georgieva said.
In December, the IMF said the “shocks” of the pandemic and war on Ukraine “disproportionately affected” low income countries, pushing them into what it described as “a weak and uncertain global economic environment.”
However, the IMF official told the press that Qatar enjoys a dynamic economic environment and praised its role in supporting global economies. She said that the IMF has provided financing to 96 countries.
While the IMF offered a rather bleak view for a third of the world’s economy in light of the ongoing war in Ukraine, the Gulf state still has a positive economic outlook.
Qatar’s economy has witnessed major growth over the past year in light of the large demand for liquified natural gas (LNG).
Qatar Economic Forum
The third QEF kicked off on Tuesday in Lusail at the newly opened Fairmont and Raffles Hotels, bringing together hundreds of local and international diplomats and business officials.
Over the course of the event, participants will engage in extensive discussions over the latest global economic challenges with the aim of marking a new “growth story.”
The event is widely seen as a reflection of Qatar’s key position in the business world as well as its role as a platform for dialogue.
The event in Lusail was inaugurated with an opening speech by Qatar’s Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman Al-Thani who tapped into global challenges affecting economies.
The Qatari official noted that humans have great capabilities in overcoming challenges, especially those striking at economies.
“Human beings are made to adapt and adjust to overcome challenges and create opportunities. Human beings have been guided by stars, crossed oceans and have carved mountains. They are capable today of overcoming these challenges and reaching economic growth,” he added.