Pakistan formally applies for G-20 debt relief

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ISLAMABAD: Pakistan has formally requested members of G-20 nations for debt relief with a commitment of not contracting new non-concessional loans, except those allowed under the International Monetary Fund (IMF) and World Bank guidelines.

According to sources, Pakistan has requested for deferment of loan installment in view of Corona’s situation. The government has not mentioned the debt relief in the request letters, although it has assessed the cumulative relief quantum at $1.8 billion for May-December 2020 period.

The amount includes a principal amount of $1.46 billion and interest of $323 million.

Sources said that in case of delay in loan disbursement, Pakistan would not be able to get new loans till December this year, while loans from the International Monetary Fund (IMF) would be exempted.

It should be noted that coronavirus has affected the economy of the world, including Pakistan, due to which the IMF has also given one year relief in repaying the loans of developing countries.

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