Door open to bilateral debt rescheduling

Pakistan said on Monday that it may seek debt rescheduling from the bilateral creditors but again reiterated that timely payments would be made to the commercial and Paris Club lenders in a bid to strike a balance between growing financial needs and maintaining its creditworthiness. “We are okay with the bilateral debt rescheduling,” said Finance Minister Ishaq Dar in a conversation with leading newspapers. Dar voiced hope that he would be able to bring back economic normalcy in the next six months and would then venture into the international capital markets. But he decided to put off any plan to raise debt through sovereign bonds till that time. Out of over $97 billion in external public debt, the bilateral debt comprised $20.3 billion, or 21%, according to statistics of the Ministry of Economic Affairs. In case, all bilateral creditors agree to roll over their debt, Pakistan will get a breathing space of $2.3 billion in the current fiscal year, which is double than what it could have received from the Paris Club.