Expensive loans rescheduled cheap loan repaid, Economy caught in trouble
According to sources of economic affairs, G20 countries will have to pay $833m in interest on $2.85bn, $3.68bn will be given debt relief under the debt deferment initiative.
Pakistan government’s peculiar logic, instead of getting rid of expensive loans, they started extending them, the finance ministry decided to pay off the cheap loans and reschedule the expensive ones.
Instead of getting rid of expensive loans, the federal government is extending them and rescheduling them, adding more interest.
On the other hand, it is being claimed by Finance Minister Ishaq Dar that Pakistan will not reschedule any foreign debt and that all debts will be paid on time.
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But the situation is the opposite and the G20 countries are struggling to defer loans. A heavy interest will have to be paid to these measures.
According to sources of economic affairs, G20 countries will have to pay 833 million dollars in interest on 2.85bn dollars, and 3.68bn dollars will be given debt relief under the debt deferment initiative.
Sources of economic affairs say that $278 million in interest will have to be paid on the $1.33bn loan deferred in phase two, and $279 million in interest will have to be paid on the 852 million dollar loan deferred in phase two.
Sources of economic affairs say that in the third phase of the loan deferment initiative, there will be 276 million interest on 670 million dollars. Debt payments from G20 countries have been deferred in 3 phases since 2020. Debt payments to G20 countries will start from 2026.
