Pakistan formally applies for G20 debt relief

Islamabad, May 5 (IANS) Pakistan has formally requested members of G20 nations for debt relief with a commitment of not contracting new non-concessional loans, except those allowed under the International Monetary Fund (IMF) and World Bank guidelines.

The formal requests were sent to individual countries on May 1 under the G20 COVID-19 Debt Service Suspension Initiative, a senior official of the Economic Affairs Ministry confirmed to The Express Tribune on Monday.

The government has not mentioned the debt relief in the request letters, although it has assessed the cumulative relief quantum at $1.8 billion for May-December 2020 period.

Pakistan has also intimated to the IMF, the World Bank and the Paris Club about its decision to formally seek debt relief, according to the official.

Pakistan owes $20.7 billion to 11 members of the G20 nations.

Out of this sum, an amount of $1.8 billion would mature by December, including the interest payments, according to the economic affairs ministry.

On April 15, the G20 nations announced a freeze on debt repayments from 76 countries, including Pakistan, during the May to December period, subject to the condition that each country would make a formal request.

–IANS

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