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Don’t worry, Pakistan arranges repayment of debt worth $3.7bn

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May 09, 2023 (MLN): In a major breakthrough, the government of Pakistan has arranged the rollover/repayment of debt worth $3.7 billion which was supposed to be repaid by the end of June, 2023, the statement issued by Finance Division on Tuesday revealed. 

"The media has carried the news that 3.7 billion dollars have to be repaid by GoP by the end of June 2023, which is correct. However, this should not be any cause of concern as arrangements have been made for the rollover/repayment of this debt," the statement read.

It may also be noted that during this period significant inflows are also in the pipeline, it added. 

The coalition government has averted the default and the economy is now on a course to stability and growth, it noted. 

Earlier this month, the Fitch Ratings in a report said that Pakistan faces a total of $3.7 billion of debt payments starting this month, putting pressure on the government to quickly secure a bailout from the International Monetary Fund (IMF).

About $700 million of maturities are due in May and another $3 billion in June, Krisjanis Krustins, a Hong Kong-based director at Fitch, said in an emailed response to questions put forth by Bloomberg.

Fitch expected $2.4 billion of deposits and loans from China will be rolled over.

The news created anxiety regarding Pakistan's debt repayment obligations, and in response, the Finance Division has clarified that there is no reason to panic.

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Posted on: 2023-05-09T13:31:13+05:00