Pakistan urges Paris Club to extend loan repayment period

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Islamabad, Sep 24 (PTI) Pakistan, which has been hit by severe flooding amid cash shortages, has urged the Paris Club of wealthy nations to extend the repayment period of the $10 billion loan.

These days, Pakistan is facing the challenge of rehabilitating more than 33 million people after the severe floods. In such a situation, he expects some relief on the debt front.

Pakistani Finance Minister Miftah Ismail said in a tweet: “Due to the disaster caused by climate change in Pakistan, we are asking bilateral Paris Club creditors for debt relief. However, we do not seek or need any assistance from commercial banks or lenders trading in euros.

It will be the third time in 20 years that the Paris club, made up of 17 members, will change the repayment period for Pakistan’s debt. Earlier, when Pakistan became a US ally in the fight against terrorism, the Paris Club extended the loan repayment period by 15 years. Then, after Covid-19, this period was extended from three to four years.

“We would ask the Paris Club to defer the debt payment for a few years,” New York-based Isle said in his tweet.

Ismail was quoted as saying by ‘The Express Tribune’ that Prime Minister Shahbaz Sharif has also asked the International Monetary Fund to advance the remaining $3 billion loan by November this year.

This year, out of a total debt of 10 billion dollars to Pakistan, the Paris club must pay 1.1 billion dollars.

Source: navbharattimes.indiatimes.com

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