Govt will not approach Paris Club for debt rescheduling: Ishaq Dar

ISLAMABAD: Finance Minister Ishaq Dar Sunday announced that Pakistan will not seek debt restructuring from Paris Club creditor nations, ARY News reported.

“We have decided not to go to Paris Club,” Dar said, adding that in consultation with Prime Minister Shehbaz Sharif it was decided that it wasn’t in the nation’s interest to ask for a restructuring.

The finance minister went on to say that Pakistan will ensure payments of its national sovereign debt liabilities with the multilateral institutions well in time.

The finance minister also rejected speculations about any extension in the maturity of an international bond of the country.

“God willing, we will pay the bonds on time,” said Dar. “We are not extending the bond maturity.”

Ishaq Dar said that All Letters of Credit (LC) payments up to $50,000 will be released by the next month.

“Total pending cases of Letter of Credit payments are 7,952 and 4,400 of them will be resolved after this decision,” he said,” adding that the government was committed to addressing the concerns of the business community.

Finance Minister also clarified that federal government will not renegotiate IMF Programme. “Pakistan is a sovereign country and all international commitments will be fulfilled.”

It is pertinent to mention here that Prime Minister Shehbaz Sharif last month made an appeal to the Paris Club for a debt moratorium after the country’s already struggling economy was hit by devastating floods that his government estimates will cause economic losses up to $30 billion.