Pakistan Seeks Rescheduling $27bn Bilateral Debt

Pakistan is looking to reschedule $27bn of its bilateral debt with various non-Paris Club countries, of which Chinese debt is about $23bn, according to the IMF. Pakistan said that it was not seeking to restructure debt from the Paris Club, as the quantum owed to it was less than 11% of its total foreign debt and debt relief from these countries would not heavily reduce its immediate debt repayments. Finance Minister Ishaq Dar also remains committed to complete the IMF program and meet all its conditions, including prompt repayment to multilateral creditors, bondholders and Paris Club creditors. Dar also mentioned that the nation will be arranging for $32-34bn for external payments, where $22bn of it would be for foreign debt servicing.

Pakistan’s 7.95% 2029s improved 1.24 points and currently trades at 62.7 cents on the dollar to yield 18.12%.

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