Pakistan won’t go for commercial loans’ refinancing, Shaikh tells ECC


From Business Correspondent

ISLAMABAD: Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh stated unequivocally yesterday that Pakistan had no intention of seeking any kind of relief for repayment of its commercial loans or borrowings.

“Pakistan has the means and will to honor its commercial commitments,” the advisor said while chairing the meeting of Chairman ECC of the cabinet.

The committee approved in principal to allow EAD to sign Memorandum of Understanding (MOU) for availing the G-20 relief initiative. However, this would be subject to the approval of the Cabinet. Pakistan is required to enter into this MoU with all official bilateral creditors including Paris Club creditors to implement the debt relief initiative of G-20.

Meanwhile, the ECC also approved various technical supplementary including Rs. 360.515 million for the repair and maintenance of Supreme Court of Pakistan Buildings in Islamabad and various cities; Rs3.836 billion in favor of Ministry of Housing and Works to execute development schemes in the Sindh Province and Rs. 291 million in favor of Ministry of Housing and Works/ Pak. PWD for payment of salary of maintenance staff of Pak. PWD.

On the recommendations of the Committee formed under the Chairmanship of Adviser to PM on Institutional Reforms and Austerity and comprising Secretary Finance Division and Secretary Power Division to look into the issues of servicing of power sector loans and stock handling in a holistic manner, ECC allowed allocation of Rs.10 billion from Stimulus Package as a stop gap arrangement for the payment of interest on the Pakistan Energy Sukuk-II for a period of six months or amendment in NEPRA Act whichever is earlier.


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