Covid-19 crisis: Pakistan will benefit from G20 debt relief of Rs 335 billion

Pakistan will separately sign its debt relief agreement with the G20 countries before the deadline of December 31, 2020, in order to receive debt relief of just over $ 2 billion ($ 335 billion). rupees) to mitigate the negative effects of the COVID-19 pandemic, media reported. reports.

A senior Finance Division official told The News on Sunday that work was underway to benefit from the debt relief announced by G20 countries.

“So far, we have reconciled more than a dozen creditors out of a total of 20, so we are working to reconcile the exact debt data as soon as possible, after which Islamabad will have to sign an agreement with each bilateral creditor separately. “said the senior official. noted.

Other sources said the deadline for accomplishing debt relief was being considered December 31, 2020, but the government was doing everything possible to complete this task in the first quarter until September 30.

This debt relief of more than $ 2 billion, according to the official, provided a much-needed respite, because if it had not happened, the pressure on the exchange rate could have increased in recent months due to the payments due on the external front.

Among the G20 countries, China was the largest bilateral creditor with its outstanding liabilities to Pakistan amounting to USD 9 billion, followed by Japan with USD 5 billion and the remaining countries including South Korea, France , Germany, Canada, the United States and Saudi Arabia. and others.

Pakistani authorities requested World Bank help to develop a standard format for requesting debt relief from bilateral creditors, but due to different standard requirements it could not be developed. Now, the Economic Affairs Division has developed its own format in consultation with stakeholders and the Ministry of Justice to move forward on this topic.

“We will soon start to sign a separate agreement with bilateral creditors to benefit from this debt relief facility to mitigate the negative effects of the COVID-19 pandemic,” the official said.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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