UN Secretary-General António Guterres has cautioned member countries that the United Nations is at risk of a near-term financial breakdown, as unpaid membership dues, strict budgetary rules and shrinking cash reserves strain the organisation’s finances and bring it to what he described as a “moment of truth”.
In a letter sent this week to all permanent representatives — a copy of which was seen by Dawn — Guterres warned that the UN could soon struggle to operate unless countries either settle their assessed contributions completely and on time or agree to major reforms in the organisation’s financial framework.
The strongly worded letter, dated Jan 28, describes the UN’s financial path as unsustainable, saying it leaves the institution vulnerable to structural dangers and facing a clear choice between meaningful reform and potential collapse.
Guterres acknowledged that the UN has previously managed periods of delayed or missing payments, but stressed that the current challenge is fundamentally different because some member states have now openly declared they will not pay their full assessed dues.
He also pointed to what he termed a “Kafkaesque” contradiction in the UN’s financial system: existing regulations require the organisation to return unused budget funds to member states even if those amounts were never actually received due to non-payment. As he put it, the UN is effectively expected to refund money that it never had.
The letter states that by the end of 2025, unpaid dues had climbed to a record $1.568 billion — more than twice the figure from the previous year — with only 76.7% of assessed contributions collected.
Although the UN has cut back on spending, its cash reserves have nearly run dry, significantly raising the likelihood of funding shortfalls.
