September 23, 2022 (MLN): Finance Minister Miftah Ismail on Friday said that Pakistan is only planning to seek debt relief from the Paris Club and other international financial institutions and not from bond investors, a report by Bloomberg showed.
"Given the climate-induced disaster in Pakistan, we are seeking debt relief from bilateral Paris Club creditors. We are neither seeking, nor do we need, any relief from commercial banks or Eurobond creditors. We have a $1 bn bond due in December which we will pay on time and in full. We have been servicing all our commercial debt and will continue to do so. Our Eurobond debt is only $8 bn due between now & 2051. That’s not a large burden. A significant portion of our debt is from friendly countries who have said they will re-roll their deposits," he clarified in a tweet.
He said that Pakistan will discuss debt relief with the Paris Club lenders, similar to the one sought during the Covid-19 pandemic. To note, the Paris Club lenders had provided extension to Pakistan to allow the country to battle with the pandemic.
FM Miftah's remarks come after Pakistan's Eurobonds prices crashed following his tweet seeking relief from creditors.
Pakistan dollar bond of 5.625% maturing in December December fell by 11 cents to trade at 81.9 cents on the dollar whereas the 2031 bonds declined by 7 cents to trade at 40.33 cents on the dollar.
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