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Debt relief pact signed with Canada

ISLAMABAD: Pakistan and Canada on Wednesday signed bilateral debt rescheduling agreement worth Canadian $40.370 million (US dollar 27.342 million).

Under this agreement, debt service payments of Canadian $40.370 million due during the period from July 1, 1998, to December 31, 2000, on loans contracted up to September 30, 1997, have been consolidated and rescheduled free of interest for repayment in 20 semi-annual instalments, commencing from July 1, 2010. Cida loans have been utilised to support a number of development projects in Pakistan.

In pursuance of the agreed minute of Paris Club signed on January 30, 1999, negotiations were held between the government of Pakistan and the government of Canada on the consolidation and rescheduling of debt owed by the former to the latter.

The agreement was signed by Nawid Ahsan, additional secretary (incharge), economic affairs division, on behalf of the government of Pakistan and by Ferry de Kerckhove, Canadian High Commissioner to Pakistan, on behalf of the government of Canada. APP