Pakistan is considering to explore possibility of debt relief from China at bilateral level but discreetly, as debt relief on multilateral and commercial debt may be precluded, it is learnt.
This was revealed during a video conference held between Federal Minister for Economic Affairs Makhdum Khusro Bakhtyar and Reza Baqir, Governor State Bank of Pakistan (SBP) at Ministry of Economic Affairs. Senior officers of the ministry also attended the virtual meeting.
According to a presentation displayed during the video conference with title "Going forward", debt relief on multilateral and commercial debt may be precluded. It further stated that Pakistan specific bilateral debt relief beyond G-20 platform is a remote possibility.
It was proposed that Pakistan may actively work at relevant fora for further debt relief under G-20 framework. The country may also explore opportunities for debt for development swaps from bilateral countries. The presentation urged exploring possibility of debt relief from China at bilateral level but discreetly.
According to official statement the federal minister and Governor SBP discussed the economy and financial health of the country amidst the pandemic. The Minister laid stress on efficient economic relief to the masses especially the vulnerable segments of society to mitigate the socio-economic impact of the pandemic. The Minister also appreciated the key steps taken by SBP to support the public and small business amid economic crunch.
The Minister deliberated with Governor SBP on Prime Minister's Global Initiative on Debt Relief to coordinate with international community for a comprehensive economic response. They also discussed various announcements made by multilateral actors offering initial relief packages of $1.4 billion by the IMF, and $1 billion by the World Bank.
Both agreed that the proposed Global Initiative is aimed to lay the ground for urgent debt relief to developing countries and the initiative was built on the Prime Minister's belief that enhanced fiscal capacity was fundamental to recover from the ongoing pandemic crises.
At conclusion of the meeting, Governor SBP lauded the efforts of the Ministry to coordinate with international donors for their assistance to mitigate the socio-economic impact of the pandemic in the country.
Comments
Comments are closed.