Will seek to reschedule $27 billion in bilateral debt: Dar

Will seek to reschedule $27 billion in bilateral debt: Dar

Finance Minister Ishaq Dar stated on Friday that he will seek rescheduling of approximately $27 billion in non-Paris Club debt, the majority of which is owing to China, but will not seek haircuts as part of any restructuring. During an interview Dar ruled out the idea of Pakistan’s debt default, an extension of the maturity date on bonds due in December, or a revision of Pakistan’s present IMF programme.

The finance minister stated that multilateral development banks and international donors had been “very flexible” in finding solutions to meet Pakistan’s estimated $32 billion in external financing needs following the disastrous floods.

Some of this may result from reallocating cash from previously approved, slower-paying development projects.