$1.8 Billion Debt Rescheduling for Countries Including Pakistan Underway: Finance Adviser

Ambassadors of France and Germany Bernhard Stephan Schla­gheck, Dr. Marc Barety, and Economic Counselor Mrs. Anais Boitieremet met with the Adviser to Prime Minister on Finance Dr. Abdul Hafeez Shaikh, to discuss the details of debt rescheduling offered by G-20 countries, and the need for loans.

Pakistan’s stance in favor of debt rescheduling drive at the G-20 forum was based on the belief that the poorer countries genuinely required this assistance even though Pakistan had benefited the least from the relief, said the statement issued by the Finance Ministry.

The advisor shared that $1.8 billion due in debt servicing to G-20 countries till December 2020 were under process of rescheduling. He further stated that Pakistan is not going for any commercial loan rescheduling.

The statement added that the advisor welcomed the ambassadors and shared the overall picture of the country’s economy amid the coronavirus pandemic and its future impact on the overall progress of the economy.

He said that before the pandemic, Pakistan was successfully able to control its current account deficit and was expecting a growth of three percent during the ongoing financial year after observing strict financial discipline. However, after the outbreak, the growth projections have become difficult to realize.

The adviser stated that due to the ongoing circumstances it is expected that the growth might remain between -1 percent to -1.5 percent.

He also told the ambassadors about the details of the relief package offered to the vulnerable by the prime minister through the Ehsaas Programme, and the steps which the government is taking to support the SME sector.

The advisor maintained that the Finance Division will adhere to the requirements of the Debt Limitation Act before planning to take up additional burden as most of the loans will be for the purpose of clearing old debt stocks.

He appreciated the support offered by the friendly countries and said that he hopes that the cooperation will continue in the future for the benefit of the people of the three countries.