Pakistan seeking debt relief from Paris Club: Miftah

Federal Finance Minister Miftah Ismail has said that friendly countries have assured to re-roll the loan payments for Pakistan, 24NewsHD TV reported on Friday.  

He said Pakistan is facing problems due to climate change and given the climate-induced disaster in Pakistan, we are seeking debt relief from bilateral Paris Club creditors.

1. Given the climate-induced disaster in Pakistan, we are seeking debt relief from bilateral Paris Club creditors. We are neither seeking, nor do we need, any relief from commercial banks or Eurobond creditors. We have a $1 bn bond due in December which we will pay on time and

— Miftah Ismail (@MiftahIsmail) September 23, 2022

The minister said the country is intending to have debt relief from bilateral creditors in the wake of ravaging floods in the country. However, he clarified that the government will not seek any relief from commercial banks or Eurobond creditors.

“There is no need to waive loans from commercial banks while creditors of Eurobonds and commercial banks are not being waived,” Finance Minister added. 

We have a one billion dollar bond due in December which we will pay on time, he said adding that the government had been servicing all the commercial debt and would continue to do so.

He said Pakistan’s Eurobond debt was only $8 billion due till 2051 which was not a big burden. “A significant portion of our debt is from friendly countries who have said they will re-roll their deposits”, he claimed. 

We have been repaying all our commercial loans till now and the payment of loans will continue in the future, said Finance Minister. 

Reporter: Waqas Azeem