Home World Cash-strapped Pakistan secures $800 million in debt relief from G20 nations: Report...

Cash-strapped Pakistan secures $800 million in debt relief from G20 nations: Report – Times of India


ISLAMABAD: Cash-strapped Pakistan has secured $800 million price of debt freeze offers from 14 members of the G20 whereas it was nonetheless awaiting ratification by the remaining six international locations of the grouping, together with Saudi Arabia and Japan, in line with a media report on Sunday.
Pakistan owes $25.4 billion to the Group of 20 wealthy nations as of August this yr. On April 15, the G-20 nations introduced a freeze on debt repayments from 76 international locations, together with Pakistan, throughout May to December 2020 interval, topic to the situation that every nation would make a proper request.
Pakistan together with 76 different poor African international locations had certified for the G-20 debt aid initiative, introduced in April this yr for May-December 2020 interval, to fight the adversarial impacts of the Covid-19 pandemic.
During the previous seven months, 14 international locations ratified their agreements with Pakistan, which has offered fiscal house of $800 million to Islamabad in the interim, The Express Tribune reported, quoting authorities sources as saying.
In addition to those 14 nations, two different international locations had additionally approached to increase debt aid to Pakistan.
According to official paperwork, Pakistan has not but finalised the debt rescheduling modalities with Japan, Russia, Saudi Arabia, United Arab Emirates and the United Kingdom.
Although these six international locations haven’t but ratified the debt aid associated agreements, these G-20 members are anticipated to conclude the deal earlier than finish of subsequent month, mentioned a senior official of the Ministry of Economic Affairs.
He mentioned that Pakistan was not making repayments to those six international locations too, on the understanding that these members would finally sign-off the offers.
Pakistan was anticipating a complete $1.8 billion momentary debt aid from the members of G-20 nations for May-December 2020 interval, in line with the Ministry of Economic Affairs. This included $1.47 billion principal loans repayments and $323 million curiosity on the loans.
The financial affairs ministry’s estimates had proven that Pakistan can get $613 million price of momentary aid from Saudi Arabia, $309 million from China, $23 million from Canada, $183 million from France, $99 million from Germany, $6 million from Italy, $373 million from Japan, $47 million from South Korea, $14 million from Russia, $1 million from the UK and $128 million from the US.
So far, Pakistani authorities have entered into 27 debt rescheduling agreements with about 16 international locations, the report mentioned.
The most aid was anticipated from Saudi Arabia to the tune of $613 million for May-December interval, it mentioned. Japan was additionally anticipated to offer $373 million aid. However, agreements with these nations had been nonetheless pending the ultimate nod.
Russia can also be anticipated to ratify the revised phrases by finish of subsequent month, which as soon as ratified might present momentary aid of $14 million, the report mentioned.
Saudi Arabia has additionally not prolonged the $3 billion monetary help bundle and has already prematurely withdrawn $1 billion that Pakistan paid again by arranging one other mortgage from China. Pakistan might also payback $1 billion subsequent month to the oil-rich kingdom, a yr forward of Pakistan’s expectations.
Meanwhile, the Economic Coordination Committee of the Cabinet on Friday authorised to make one other formal request to the G-20 nations for extension in debt aid initiative for an additional six months, the report mentioned.
This time, the Ministry of Economic Affairs has estimated that Pakistan can doubtlessly get aid of $915 million, together with $273 million in curiosity funds throughout January-June 2021 interval.
The most aid of $385 million is predicted from China, adopted by $211 million from Japan, $104 million from France, $53.6 million from Germany, $65 million from the US, $12 million from Saudi Arabia, $7 million from Russia and half one million greenback from the UAE.
In case, Japan and Saudi Arabia additionally delay the aid below the second section, the web advantages could come all the way down to $685 million within the second section, mentioned the sources.

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