Zubair Qureshi
Islamabad
The governments of France, China and Switzerland have rescheduled, effectively suspending Pakistan’s debt payments thus providing the country much-needed relief and fiscal space in the fight against pandemic.
In this regard Memorandums of Understanding (MoUs) were signed between the Pakistan government and the respective embassies’ representatives at the Economic Affairs Division on Monday.
Federal Secretary EAD, Noor Ahmed signed on behalf of the Federal Government signed the MoU while Ambassador of Switzerland Benedict de Cerjat, Charge d’Affaires Embassy of France Yves Manville and Third Secretary Embassy of China Zhu Songsong signed the documents on their countries’ behalf.
Suspending Pakistan’s debt payments is an initiative of the G-20 countries followed by the Paris Club creditors and according to a senior official of the EAD Monday’s signing ceremony is first of the several in the coming days when other countries too would offer a similar incentive to Pakistan.
The government of Pakistan has successfully negotiated and concluded rescheduling agreements with 19 bilateral creditors including members of the Paris Club.
Federal Secretary Noor Ahmed after the ceremony expressed his gratitude to the creditor countries (G-20 & Paris Club) for their debt suspension support. It is a timely gesture and will help Pakistan counter the pandemic and save lives and livelihoods of millions during the difficult Covid-19. Later, while talking to Pakistan Observer, Economic Counsellor of the Embassy of France, Dominique Simon said under the MoU Pakistan would get a $1.8 billion debt service suspension relief that was due in May this year but was postponed till the end of the current year.
We are going to sign another MoU with the Pakistan government in the first semester of 2021 and under that second agreement, debt amounting to $800 million would be further rescheduled, said Dominique Simon.
Senior officials of the EAD Joint Secretary Shehnaz Maqbool, Deputy Secretary Shahid Iqbal and Section Officer Sarmad Jabbar were also present st the MoU signing ceremony.
