Cash-strapped Pakistan has secured USD 800 million value 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 accordance with a media report on Sunday. Pakistan owes USD 25.four billion to the Group of 20 wealthy nations as of August this 12 months. 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 relief initiative, introduced in April this 12 months for May-December 2020 interval, to fight the opposed impacts of the COVID-19 pandemic. During the previous seven months 14 international locations ratified their agreements with Pakistan, which has supplied fiscal area of USD 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 relief 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 relief 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 USD 1.eight billion short-term debt relief from the members of G-20 nations for May-December 2020 interval, in accordance with the Ministry of Economic Affairs. This included USD 1.47 billion principal loans repayments and USD 323 million curiosity on the loans.
The financial affairs ministry’s estimates had proven that Pakistan can get USD 613 million value of short-term relief from Saudi Arabia, USD 309 million from China, USD 23 million from Canada, USD 183 million from France, USD 99 million from Germany, USD 6 million from Italy, USD 373 million from Japan, USD 47 million from South Korea, USD 14 million from Russia, USD 1 million from the UK and USD 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 relief was anticipated from Saudi Arabia to the tune of USD 613 million for May-December interval, it mentioned. Japan was additionally anticipated to offer USD 373 million relief. However, agreements with these nations have 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 may present short-term relief of USD 14 million, the report mentioned.
Saudi Arabia has additionally not prolonged the USD three billion monetary help package deal and has already prematurely withdrawn USD 1 billion that Pakistan paid again by arranging one other mortgage from China. Pakistan may additionally payback USD 1 billion subsequent month to the oil-rich kingdom, a 12 months forward of Pakistan’s expectations.
Meanwhile, the Economic Coordination Committee of the Cabinet on Friday accepted to make one other formal request to the G-20 nations for extension in debt relief initiative for one more six months, the report mentioned.
This time, the Ministry of Economic Affairs has estimated that Pakistan can doubtlessly get relief of USD 915 million, together with USD 273 million in curiosity funds throughout January-June 2021 interval.
The most relief of USD 385 million is predicted from China, adopted by USD 211 million from Japan, USD 104 million from France, USD 53.6 million from Germany, USD 65 million from the US, USD 12 million from Saudi Arabia, USD 7 million from Russia and half 1,000,000 greenback from the UAE.
In case, Japan and Saudi Arabia additionally delay the relief below the second part, the web advantages could come right down to USD 685 million in the second part, mentioned the sources.