ISLAMABAD: To get major relief in foreign loan repayments, Pakistan is seeking rescheduling of bilateral debt, involving $27 billion.
“Rescheduling of bilateral debt is fine,” Finance Minister Ishaq Dar said. He, however, ruled out rescheduling of international debt under Paris Club, multilaterals and international sovereign bonds.
Dar told media that there was no point in Paris Club rescheduling debt, because the overall debt to these creditors was no more than 11pc of total foreign debt. Pakistan owes Paris Club countries a combined sum of around $10.7 billion, he added.
He said that the repayments involve $22 billion worth of foreign debt servicing and another $10-12 billion are required for the current account deficit.
As of September 30, the reserves with the State Bank of Pakistan fell to $7.89 billion while the national reserves are around $13.6 billion, including $5.69 billion of commercial banks.
According to the International Monetary Fund (IMF), Pakistan’s total non-Paris Club bilateral debt currently stands at about $27 billion, which includes $23 billion Chinese debt.
The US and IMF have been insisting on renegotiation of power purchase agreements with China to secure fiscal space in foreign payments. Non-Paris Club members generally include China, Saudi Arabia and other Middle Eastern states.
Dar reaffirmed Pakistan’s commitment to complete the IMF programme with all its conditions in an honourable manner and meet all repayment obligations to multilaterals, bond holders and Paris club creditors.
He said the ninth review with the IMF was scheduled for October 25 and ruled out any consideration for renegotiating the IMF agreement as it was in the final stage of its completion.
