Paris Club

 Paris Club extends Pakistan's debt payment deadline.

 

              Pakistan gets major relief from the Paris Club, according to IMF Pakistan owes 11.5 billion to the Paris Club. This initiative will also contribute to help Pakistan to improve debt transparency and debt management, said in a statement by the Paris Club. The Paris Club creditor countries on Friday that it was giving Pakistan to another extension  to service its debt so that it can dedicate its resources to combatting the Covid-19 Pandemic.
                The country has until December to make  the payment, the club said in a statement without releasing a figure. Islamabad is committed to devote the resources freed by this initiative to increase spending in order to mitigate the health, economic and social impact of the Covid-19 crises, said in the statement.
                Government of Islamic Republic of Pakistan is also committed to seek from all its other bilateral  officials creditors a debt service treatment that is in line with the agreed terms sheet and its addendum. This initiative will also  contribute to the help  the Islamic Republic of Pakistan to improve debt transparency and debt management. It added that the Paris Club creditors will continue to closely coordinate with non-Paris Club G-20 creditors and other stakeholders in the ongoing implementation of the Debt service suspension Initiative (DSSI) and its extension, so as to provide maximum support to beneficiary countries.
            The country's debt amounts to so e 90 % of its gross domestic product, according to the International Monetary Fund (IMF). Its debt service for the 2021-2022 fiscal year total 56.9 billion, IMF says, Pakistan owes 11.5  billion to the Paris Club, according to the IMF.
            The members of the Paris Club which participate in the reorganization of Pakistan's debt are the governments of Austria, Belgium, Canada, Finland, France, Germany, Italy, Japan, the Netherlands, Norway, the Republic of Korea, The Russian Federation, Spain, The United Kingdom and the United States of America.
            Pakistan is one of the countries in the world which is running the country's system with loans from international financial institutions. The high Export bill is also having a negative impact on the economy. Other factors include non-collection of taxes. Rising global oil prices are the reasons that weaken the growth rate of the Pakistani economy.