NEW YORK, NEW YORK - SEPTEMBER 23: Prime Minister of the Islamic Republic of Pakistan Muhammad Shehbaz Sharif speaks at the 77th session of the United Nations General Assembly at U.N. headquarters on September 23, 2022 in New York City. - AFPPIX: Pakistan on Friday tried to calm creditor fears after Prime Minister Shehbaz Sharif made a desperate plea for “substantial debt relief” from rich countries.
“We have a US$1 billion bond due in December which we will pay on time and in full. We have been servicing all our commercial debt and will continue to do so,“ he said.“That’s not a large burden. A significant portion of our debt is from friendly countries who have said they will re-roll their deposits,“ Miftah said.
In August, the International Monetary Fund approved a loan agreement with Pakistan to release about US$1.1 billion in new funding.There have been concerns about Pakistan’s debt obligations and its dwindling foreign exchange reserves recently due to political uncertainty.