Multilateral, bilateral commercial lenders & friend countries have confirmed an overall debt relief to the tune of $9.2 billion for Pakistan

ISLAMABAD, Jan 28 (SABAH):  The Multilateral, Bilateral Commercial Lenders and friend countries have confirmed an overall debt relief to the tune of $9.2 billion for Pakistan to overcome its debt obligations during the ongoing fiscal year 2023-24 and beyond.

The relief included the increase in the repayment period, or Roll-Over of $7 billion to outstanding against Pakistan, re-financing of $1 billion maturing debt during this fiscal year and $1.2 billion as amortization savings from debt arrangements of existing external loan. 

According to the official figures agreed between Pakistan and its individual lenders, under the umbrella of International Monetary Fund (IMF), the mid-term review of the Pakistan financing need for this fiscal year 2023-24.  IMF has suggested that Pakistan gross external financing needs have been assessed at $25 billion for Pakistan for ongoing fiscal year including g the current account, of which about$13.8 billion is amortization of public sector.

 Pakistan had also secured $5.6 billion additional funding commitments from the friendly countries, ahead of the approval oy Stand-By-Arrangement from International Monetary fund in July 2023. Pakistan has already received $3 billion from multilateral, bilateral and commercial partners out of a total commitment of $5.6 billion ahead of $3 billion IMF program in July 2023.

According to the official, estimates, Pakistan during the current fiscal year also secured financial commitments to the tune of $9.2 billion from partners which included Increase in the repayment period (Roll Over) of $7 billion, re-financing of $1 billion maturing debt and $1.2 billion in amortization savings from a debt rearrangement covering some existing external loans. In line with program financing commitments, key bilateral creditors will at least maintain their exposure to Pakistan.