God does not forgive because He has never condemned. And there must be condemnation before forgiveness is necessary.
Forgiveness is the great need of this world, but that is because it is a world of illusions. Those who forgive are thus releasing themselves from illusions, while those who withhold forgiveness are binding themselves to them. As you condemn only yourself, so do you forgive only yourself.
Yet although God does not forgive, His Love is nevertheless the basis of forgiveness.
~ Jesus, A Course in Miracles