$1.8bn debt servicing to G20 states under rescheduling process.

Byline: Khaleeq Kiani

ISLAMABAD -- The government on Monday said that Pakistan's $1.8bn debt servicing to G20 countries till DecAember was currently under process of rescheduling and it was not seeking rescheduling of any commercial loan.

The Economic Coordination Committee (ECC) of the Cabinet authorised the Ministry of Economic Affairs on April 17 to hold talks with representatives of G20 countries for the debt relief they had announced for the poor countries.

The ECC had also asked the ministry of economic affairs to formally hold talks with 11 bilateral creditors for suspension of bilateral debt.

The ECC had also advised the economic affairs ministry to get back to the ECC after holding talks with bilateral creditors for formal approval of debt rescheduling agreements.

The overall debt relief would mean suspension of $1.8bn payable by Pakistan to 11 countries during May this year to June next year, both in the shape of the principal amount of the loan and its interest. These amounts would then be built into the remaining repayment schedule.

ECC has also asked ministry to negotiate suspension of bilateral debt

Pakistan's total debt payable to these nations stands at about $20.7bn under 155 loans. Pakistan does not have any loan from the remaining nine members of the G20 countries. The meeting was informed that about $415 million, including $320 million as principal amount and $95.3 million as interest, was due to be paid in May and June this year.

Likewise, an amount of $1.380bn, including the principal amount of $1.178bn, will become payable between July and December during this period. As such, the total debt payable between now and December this stands at $1.795bn, including $1.409bn as principal amount and $386 million as interest on the loan.

The total debt to be paid by Pakistan to 11 bilateral lenders between May 2020 and June 2021 currently stands at $2.580bn. The biggest amount payable by Pakistan during this period is $625 million to Saudi Arabia, followed by $615 million to China and $578 million to Japan. Also, about $281 million is due to be paid to France, $193...