October 03, 2018: Pakistan and Italy have agreed to further extend the timeline of Pak-Italy debt for Development Swap Agreement (PIDSA) till June 30, 2020, through exchange of Letter, for the successful implementation of all the PIDSA operations including cancellation of the remaining debt amount.
According to a statement issued by finance ministry, the agreement is meant for the implementation of development projects in the areas of agriculture, health, education, environment, basic infrastructure, rural development, micro credit and poverty alleviation.
Under, the agreement, US $26.52 million and Euro 58.74 million equivalent to Rs. 8.27 billion of Pakistan’s debt owed to Italy was to be swapped for expenditures on selected development projects.
The management committee of PIDSA is the highest decision making forum for the implementation of PIDSA programme. Assisted by the Technical Support Unit, a total of 35 projects have been completed so far, 10 projects are ongoing and 4 projects are still to be undertaken.
Hitherto, the government of the Italian Republic has canceled debt amounting to Rs. 6.41 billion (78%) over the total debt swap amount of Rs. 8.27 billion.