ISLAMABAD (WEB NEWS)
Finally Pakistan has started getting benefit of rescheduling of foreign debt in the wake of the most catastrophic floods. The United States is the first country to rollover its $132 million markup payment by Pakistan.
Pakistan is also seeking roll-over of $2 billion in Chinese deposits to its reserves, according to a statement from Pakistan Finance Minister Ishaq Dar’s office. The Ministry of Finance issued this statement after Ishaq Dar’s meeting with Chinese envoy Nong Rong.
It said Dar sought the ambassador’s support in facilitating the roll-over of SAFE China deposits of $2 billion due in March 2023, Mettis Global reported today.
Beijing has already refinanced the syndicate facility of $2.24bn to Pakistan earlier this year.
Meanwhile, the United States is the first country to rollover its debt payable by Pakistan this year.
The U.S. Ambassador to Pakistan Donald Blome signed the agreement to reschedule the loan under the G20 debt service suspension initiative.
In a statement, the US Embassy said, “Our priority is to redirect critical resources in Pakistan.”
The rollover is related to the Paris club agreement in April 2020 to support 73 lower income countries during COVID, under which the United States provided relief on $128mn in debt to Pakistan.
The country’s bonds had slumped to just half their face value, after the Financial Times said a United Nations development agency was urging the cash-strapped country to restructure its debt.