Pakistan Prime Minister Imran Khan Sunday thanked the Kingdom of Saudi Arabia for timely providing financial assistance to Pakistan back in 2018 when PTI took over the ailing economy, Daily Pakistan reported. Addressing Pakistani community at a ceremony in connection with Roshan Digital Account, the premier said that Pakistan could have defaulted on international debt payments if Saudi Arabia had not extended the helping hand in that tough times. Back in October 2020, the Kingdom had announced a $6 billion bailout package for Pakistan’s shaky economy.
Pakistan plans to ask China for relief on payments for power projects Beijing financed over the past eight years, the latest developing nation that’s struggling to repay debt under President Xi Jinping’s Belt and Road Initiative, Bloomberg News reported. In informal talks, Pakistan and China have discussed easing terms on the repayment of debt on about a dozen power plants. The parties have canvassed Beijing’s willingness to stagger debt payments, as opposed to lowering equity returns.
The economic fallout from the Covid-19 crisis is likely to tip several of the world’s poorest countries into debt distress, forcing official creditors and private-sector lenders to accept a reduction or restructuring of loan repayments, the Paris Club group of creditor countries said on Tuesday, the Financial Times reported.
Moody’s has clashed with the UN after putting five countries on review for a downgrade in recent weeks, saying that a G20-backed debt suspension scheme poses risks to private creditors, the Financial Times reported. The rating agency took action against Ethiopia, Pakistan, Cameroon, Senegal and the Ivory Coast, after the countries opted into a G20-backed initiative that allows them to freeze official bilateral debt repayments due this year to member nations and members of the Paris Club, a group representing major credit countries.
Investors have warmed to Pakistan since the government secured a $6bn bailout from the IMF in July, removing any immediate threat of sovereign default, the Financial Times reported. MSCI’s Pakistan equities index is up more than a third from its August lows, compared with a gain of just over 10 per cent for MSCI’s flagship emerging market index. Foreign investors have made a tentative return to the country’s local debt market, buying $1.2bn of local currency government bonds since July after staying away for most of the past two years.