ISLAMABAD - On the basis of the Paris Club Debt Rescheduling Agreement, 2001, Government of Pakistan and Italy agreed to cancel 50 percent of the debt owed by Pakistan for the expenditure already incurred on Afghan refugees. The remaining 50 percent of the debt (US 26.52 million & Euro 58.74 million) was agreed to be swapped for the jointly agreed social and developmental projects under a Debt for Development Swap Agreement signed on 4-11-2006, according to a Finance Ministrys press release issued here on Tuesday. Debt conversion was to be effected in five annual tranches on June 30th of each year. First tranche was deposited in 2007 and so far four tranches have been deposited. Estimated total funds under the Debt Swap are 8,067 million. Funds under the debt swap agreement are to be utilised on jointly agreed projects aiming at socio-economic development in the priority sectors of agriculture, health, education and basic infrastructure. To manage and oversee the utilisation of funds a management committee has been established co-chaired by the Italian Ambassador and Secretary EAD with representation from all the provinces, Ministry of Finance, Planning Commission and Ministry of Foreign Affairs. Utilisation of funds has been 33 percent of the existing projects in its first year i.e. by June 30, 2010 totalling an amount of Rs940.91 million. The management committee that is co-chaired by the Italian Ambassador endorsed cancellation of this amount in its meeting held on 11th August 2010. Third meeting held on 11th and 19th August 2010 approved 23 projects worth Rs3,137 million. First semester instalment for the projects with whom the terms of reference have been signed amounts to Rs222.38 million.