Pakistan speaking to bilateral lenders to restructure debt –finance minister 

This handout photograph taken and released on June 9,2023 by the Pakistan National Assembly, shows Pakistan's Finance Minister Ishaq Dar presenting the budget 2023-2024 in the national assembly in Islamabad. (AFP/File)
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Updated 10 June 2023
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Pakistan speaking to bilateral lenders to restructure debt –finance minister 

  • Pakistan’s IMF program runs out this month with about $2.5 billion in funds yet to be released 
  • Islamabad struggles for an agreement amid record inflation, fiscal imbalances, low forex reserves 

KARACHI: Pakistan is speaking to its bilateral creditors to restructure its debt, the cash strapped country’s finance minister said on Friday. 

Pakistan’s IMF program runs out this month with about $2.5 billion in funds yet to be released as it struggles to strike an agreement with the lender, as it grapples with record inflation, fiscal imbalances and critical levels of reserves that cover barely a month worth of imports. 

Bilateral creditors made up $37 billion of Pakistan’s debt in the fiscal year 2021, out of which $23 billion is owed to China, according to an IMF country report released last year. 

Minister Ishaq Dar said, “We are in the process of engaging bilateral lenders to restructure debt,” speaking on Geo TV hours after presenting the country’s national budget. 

“No haircuts will be made... Interest will be serviced, and principal payments will be staggered,” said Dar. 

In order to unlock funding under its long-delayed 9th review, Pakistan is required to secure firm and credible financing commitments to close the $6 billion gap. The government has only been able to get commitments of $4 billion, mainly from Saudi Arabia and the United Arab Emirates. 

The country has also rolled over debt from China as its reserves reach critical levels. 
 


Minister says Pakistan’s Hajj 2026 policy ‘effective,’ in line with Saudi guidelines

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Minister says Pakistan’s Hajj 2026 policy ‘effective,’ in line with Saudi guidelines

  • A large portion of the Pakistan’s private Hajj quota for 2025 remained unutilized due to delays by tour operators
  • While the government fulfilled its full allocation, private operators attributed the shortfall to technical issues

ISLAMABAD: Pakistan’s Minister for Religious Affairs Sardar Muhammad Yousaf has said the government formulated an “effective” Hajj Policy 2026 that is in accordance with guidelines issued by Saudi Arabia.

Pakistan approved the Hajj 2026 policy in July, under which the country has a quota of 179,210 pilgrims. Of which, around 120,000 seats have been allocated for the government scheme and the rest for private tour operators.

The government ensured digitization of Hajj services, electronic monitoring and complaint system, long and short duration Hajj packages, and prioritizing those who could not perform the pilgrimage under the private scheme last year.

Speaking to the state-run Radio Pakistan broadcaster, Yousaf said that the government is trying to expand the “Route to Makkah” facility to Lahore. The initiative allows pilgrims to complete travel formalities at their departure airports.

“Training for the 2026 Hajj is currently underway across the country, with mandatory sessions being conducted in various districts,” the minister was quoted as saying.

A large portion of the Pakistan’s private Hajj quota for 2025 remained unutilized due to delays by tour operators in meeting payment and registration deadlines, while the government fulfilled its full allocation of over 88,000 pilgrims.

Private operators had attributed the shortfall to technical issues, including payment processing problems and communication breakdowns.

Pakistan this month also requested Saudi Arabia to increase its Hajj quota in proportion to the country’s population of 240 million, Radio Pakistan reported.

“Pakistan has formally requested the Saudi government to increase its Hajj quota to 230,000, in proportion to the country’s population, to allow more people to undertake the pilgrimage,” Yousaf was quoted as saying.