No plan to reschedule multilateral loans: Dar

No plan to reschedule multilateral loans: Dar

ISLAMABAD, Jun 10 (APP): Federal Minister for Finance and Revenue, Senator Mohammad Ishaq Dar said here on Saturday that the government had no plan to reschedule multilateral loans, however bilateral loans could be negotiated.

Addressing the post-budget press conference, the minister said, government had no plans for the Paris club rescheduling. “We will not go for rescheduling of the multilateral debt. We will make the payments on time when they become due,” he said.

He said it was not a dignified way to go and tell them (multilateral partners) that we could not pay. “That means you are firstly declaring yourself that you are not in a position to repay,” he added.

However, the minister said, as far as bilateral debts were concerned there was always room to negotiate but not for haircuts or write offs.

He said bilateral loans could be negotiated for a longer term and this was not unusual because of the Covid-19, flood catastrophe and other confronted challenges..

“We will consider and talk to our bilateral partners but have no plan to go to multilateral development institutions requesting them to reschedule our debt. The government will also not reschedule the domestic loans,” the minister remarked.

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