Guterres warns UN risks ‘imminent financial collapse’

UNITED NATIONS (United States)(National Times)- United Nations chief Antonio Guterres on Friday warned that the world body is on the brink of financial collapse and could run out of cash by July, as he urged countries to pay their dues. The UN faces chronic budget problems because some member states do not pay their mandatory contributions in full, while others do not pay on time, forcing it into hiring freezes and cutbacks. “Either all Member States honor their obligations to pay in full and on time — or Member States must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” Secretary-General Guterres wrote in a letter. US President Donald Trump’s administration has in recent months reduced its funding to some UN agencies and has rejected or delayed some mandatory contributions. Trump has often questioned the UN’s relevance and attacked its priorities. The organization’s top decision-making body, the Security Council, is paralyzed because of tensions between the United States and Russia and China, all three of which are permanent, veto-wielding members. Trump also launched his “Board of Peace” this month, which critics say is intended to become a rival to the UN.

‘UNTENABLE’

Although more than 150 member states have paid their dues, the UN ended 2025 with $1.6 billion in unpaid contributions — more than double the amount for 2024. “The current trajectory is untenable. It leaves the Organization exposed to structural financial risk,” Guterres wrote. The UN is also facing a related problem: it must reimburse member states for unspent funds, Farhan Haq, one of the Guterres’ spokespeople, said during a press briefing. The secretary-general also highlighted that problem, writing in the letter: “We are trapped in a Kafkaesque cycle; expected to give back cash that does not exist.” “The practical reality is stark: unless collections drastically improve, we cannot fully execute the 2026 program budget approved in December,” Guterres’ wrote, adding: “Worse still, based on historical trends, regular budget cash could run out by July.” Guterres, who will step down at the end of 2026, this month gave his last annual speech setting out his priorities for the year ahead and said the world was riven with “self-defeating geopolitical divides (and) brazen violations of international law.” He also slammed “wholesale cuts in development and humanitarian aid” — an apparent reference to deep cuts to the budgets of UN agencies made by the United States under the Trump administration’s “America First” policies.



Latest News
Pakistan assails 17 Indian water projects, calls them ‘tools for hydro-hegemony’
Centre committed not to ask for further ‘sacrifices’ after freeze on provinces’ development funds: Bilawal
FY2026-27 budget: Senate seeks increase of income tax exemption threshold, reduction in electricity tariffs
PM says US, Iran have signed deal electronically; Iran to ‘instantly’ reopen Hormuz, US to ‘immediately’ lift blockade
Israeli FM says he is severing ‘all contact’ with EU foreign policy chief
Bilawal agrees to join budget debate after meeting with PM Shehbaz
Suparco puts 130 glacial lakes on danger watch
BUDGET 2026-27: Budget debate nearly devolves into fisticuffs




Multi Media   
2025 in Review: A Year of Impact and Progress in Brussels
 Multi Media
DPM-FM Senator Ishaq Dar’s High-Level Brussels Visit: Key Highlights
 Multi Media
Embassy of Pakistan 🇵🇰 in Brussels || Quarterly Recap of Activities, Engagements & Outreach
 Multi Media
DPM Dar sends Trump peace prize nomination to Nobel Committee
 Multi Media
Pak Navy Chief Visits Foreign Ships Participating in Ninth Multinational Naval Exercise Aman | ISPR