Pak out of economic vulnerability phase: Fin Min

Pakistan’s Finance Minister Ishaq Dar on Saturday declared that the country was out of the economic vulnerability phase and the government would make payments to multilateral lenders on time while seeking bilateral debt restructuring. Addressing the post-budget press conference in Islamabad, a day after unveiling the Rs 14.46 trillion budget for the 2023-24 fiscal year beginning from July 1, Dar said there were no plans to approach multilateral or development institutions to request debt rescheduling. “As far as Paris Club rescheduling, we have no such plan on our menu. We will not go for rescheduling multilateral debt. We will make the payments on time and when they become due. I don’t think it is a dignified way to go and tell them that we cannot pay,” he said. Dar said negotiations could be pursued with bilateral lenders for extending the repayment period, which existed as an option and could be explored after the budget process. “Backloading the principal and focusing on debt servicing could be considered for bilateral debt rescheduling,” he said. Dar also clarified that there was no issue with the domestic debt, and the government would not go for its rescheduling.