ISLAMABAD-Pakistan is not going for any commercial loan rescheduling until now as only $1.8 billion due in debt servicing to G-20 countries are under process of rescheduling by December 2020.

Pakistan would have to pay $1.8 billion out of total $20.7 billion to the 11 countries of Group of 20 rich nations by December this year.

The $1.8 billion amount included $1.47 billion as principal loans and $323 million as interest. Pakistan will have to pay $613 million as Saudi debt and $309 million as Chinese debt, $23 million to Canada, $183 million to France, $99 million to Germany, $6 million to Italy, $373 million to Japan, $47 million to South Korean, $14 million to Russia, $1 million to UK and $128 million to the US.

“Pakistan is not going for any commercial loan rescheduling until now,” said Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh in a meeting with Ambassador of Germany Bernhard Stephan Schlagheck accompanied by French Ambassador Dr. Marc Barety and Economic Counselor Mrs. Anais Boitiere.

The Ambassadors discussed with the Adviser the details of the debt rescheduling offered by G-20 countries and the need for any further loans.

The Adviser said that Pakistan’s firm stance in favour of debt rescheduling drive at the G-20 forum was based on the belief that the poorer countries genuinely require this assistance though Pakistan Specifically had benefitted lesser from the said relief.

He also shared that $1.8 billion due in debt servicing to G-20 countries till December 2020 are under process of rescheduling. Pakistan is not going for any commercial loan rescheduling until now, said the Adviser.

The Finance Division shall adhere to the requirements of 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, shared the Adviser.

Earlier, the Advisor welcomed the Ambassadors and shared with them the overall picture of the country’s economy amid the Corona Virus pandemic and its future impact on the overall progress of the economy.

He shared that before the pandemic Pakistan was successfully able to control its current account deficit and was expecting a growth of 3 per cent during the ongoing financial year after observing strict financial discipline.

However, after the outbreak the growth projections have become difficult to realise. He shared that due to the ongoing circumstances it is expected that the growth might remain between -1 per cent to -1.5 per cent.

He then, told the ambassadors about the details of the relief package offered to the vulnerable by the Prime Minister through Ehsaas Program and the steps which the government is taking to support the SME sector.

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