Money-strapped Pakistan has secured USD 800 million value of debt freeze offers from 14 members of the G20 whereas it was nonetheless awaiting ratification by the remaining six international locations of the grouping, together with Saudi Arabia and Japan, in line with a media report on Sunday. Pakistan owes USD 25.4 billion to the Group of 20 wealthy nations as of August this yr. On April 15, the G-20 nations introduced a freeze on debt repayments from 76 international locations, together with Pakistan, throughout Might to December 2020 interval, topic to the situation that every nation would make a proper request.
Pakistan together with 76 different poor African international locations had certified for the G-20 debt aid initiative, introduced in April this yr for Might-December 2020 interval, to fight the adversarial impacts of the COVID-19 pandemic. In the course of the previous seven months 14 international locations ratified their agreements with Pakistan, which has supplied fiscal house of USD 800 million to Islamabad in the intervening time, The Specific Tribune reported, quoting authorities sources as saying.
Along with these 14 nations, two different international locations had additionally approached to increase debt aid to Pakistan. In response to official paperwork, Pakistan has not but finalised the debt rescheduling modalities with Japan, Russia, Saudi Arabia, United Arab Emirates and the UK.
Though these six international locations haven’t but ratified the debt aid associated agreements, these G-20 members are anticipated to conclude the deal earlier than finish of subsequent month, mentioned a senior official of the Ministry of Financial Affairs. He mentioned that Pakistan was not making repayments to those six international locations too, on the understanding that these members would ultimately sign-off the offers.
Pakistan was anticipating a complete USD 1.8 billion short-term debt aid from the members of G-20 nations for Might-December 2020 interval, in line with the Ministry of Financial Affairs. This included USD 1.47 billion principal loans repayments and USD 323 million curiosity on the loans.
The financial affairs ministry’s estimates had proven that Pakistan can get USD 613 million value of short-term aid from Saudi Arabia, USD 309 million from China, USD 23 million from Canada, USD 183 million from France, USD 99 million from Germany, USD 6 million from Italy, USD 373 million from Japan, USD 47 million from South Korea, USD 14 million from Russia, USD 1 million from the UK and USD 128 million from the US.
Thus far, Pakistani authorities have entered into 27 debt rescheduling agreements with about 16 international locations, the report mentioned.
The utmost aid was anticipated from Saudi Arabia to the tune of USD 613 million for Might-December interval, it mentioned. Japan was additionally anticipated to offer USD 373 million aid. Nonetheless, agreements with these nations have been nonetheless pending the ultimate nod.
Russia can be anticipated to ratify the revised phrases by finish of subsequent month, which as soon as ratified might present short-term aid of USD 14 million, the report mentioned.
Saudi Arabia has additionally not prolonged the USD 3 billion monetary help bundle and has already prematurely withdrawn USD 1 billion that Pakistan paid again by arranging one other mortgage from China. Pakistan can also payback USD 1 billion subsequent month to the oil-rich kingdom, a yr forward of Pakistan’s expectations.
In the meantime, the Financial Coordination Committee of the Cupboard on Friday permitted to make one other formal request to the G-20 nations for extension in debt aid initiative for an additional six months, the report mentioned.
This time, the Ministry of Financial Affairs has estimated that Pakistan can probably get aid of USD 915 million, together with USD 273 million in curiosity funds throughout January-June 2021 interval.
The utmost aid of USD 385 million is predicted from China, adopted by USD 211 million from Japan, USD 104 million from France, USD 53.6 million from Germany, USD 65 million from the US, USD 12 million from Saudi Arabia, USD 7 million from Russia and half one million greenback from the UAE.
In case, Japan and Saudi Arabia additionally delay the aid underneath the second section, the web advantages could come right down to USD 685 million within the second section, mentioned the sources.