Islamabad: Pakistan has requested for Chinese assistance in terms of obtaining an extension in the repayment schedule of its foreign debt — with one-half of this figure, amounting to USD 27.8 billion, set to mature within the coming three years, a news source reported.
As per the publication, Finance Adviser to Prime Minister (PM) Dr. Abdul Hafeez Shaikh held a meeting with the Chinese Ambassador to Pakistan Yao Jing and sought support from China in the unprecedented economic situation triggered by the COVID-19 pandemic.
Out of the total USD 27.8 billion debt, Pakistan is supposed to pay USD 19 billion to the four major creditors of the country — China, the World Bank (WB), the Asian Development Bank (ADB), and the International Monetary Fund (IMF). Hafeez expressed his hope that the IMF, WB, and G-20 countries would extend debt relief to Pakistan along with other developing countries. Pakistan is expected to pay back USD 9.8 billion alone in the fiscal year 2020-21 (FY 2020-21).
Hafeez further discussed the overall economic situation of the country in the wake of coronavirus breakout, and the decline in remittances and exports due to the recession in major global economies. He said that different economies across the world had different strength levels to deal with the present situation, and that the weaker economies would be the worst affected by the economic slowdown.
