Pakistan central bank chief says Pakistan not considering bilateral debt restructuring

Governor of the State Bank of Pakistan, Jameel Ahmad addresses a press conference at the bank's headquarters in Karachi on January 23, 2023. (AFP/File)
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Updated 13 June 2023
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Pakistan central bank chief says Pakistan not considering bilateral debt restructuring

  • Finance minister said last week government working on possibility of restructuring bilateral debt
  • Pakistan’s IMF program runs out this month with about $2.5 billion in funds yet to be released

KARACHI: Pakistan’s central bank governor said the country is not considering a bilateral debt restructuring, sources that attended an analyst briefing following the monetary policy decision told Reuters.

“As of now there is no plan to enter into any debt restructuring,” the sources cited State Bank of Pakistan (SBP) governor Jameel Ahmad as saying.

“Absolutely no doubt about it. We are not considering any such plan, so there is no question of what will be the haircut,” he added.

After presenting the federal budget for FY 2024, finance minister Ishaq Dar had said that the government is working on the possibility of restructuring its bilateral debt regardless of whether it successfully completes its IMF review.

“We’ll see how things go,” Dar had told reporters, a day after releasing the budget for the 2023-24 financial year, referring to whether to restructure or reprofile debt as Pakistan continues to speak with the IMF about its stalled bailout funds.


Pakistan PM heads to Davos to push dialogue in divided world, court investors

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Pakistan PM heads to Davos to push dialogue in divided world, court investors

  • Shehbaz Sharif will participate in the World Economic Forum’s gathering of economic leaders
  • He will also highlight Pakistan’s economic vision, trade prospects and investment opportunities

ISLAMABAD: Prime Minister Shehbaz Sharif will attend the annual meeting of the World Economic Forum in Davos from Tuesday, where he is expected to push dialogue in an increasingly divided world while courting foreign leaders and investors as Pakistan seeks to build on recent economic stabilization, an official statement said.

Held in Davos-Klosters, the World Economic Forum’s annual meeting is among the world’s most prestigious global platforms, bringing together heads of state and government, senior business executives, leaders of international organizations and civil society to debate geopolitical, economic, social and environmental challenges.

“Prime Minister Muhammad Shehbaz Sharif will lead a high-level delegation to the Annual Meeting of the World Economic Forum (WEF) in Davos-Klosters, Switzerland, from 20 to 22 January 2026,” the foreign office said in a statement.

“The Prime Minister’s program includes multiple substantive engagements, including participation in the WEF’s Informal Gathering of World Economic Leaders’ session on ‘Restoring a Spirit of Dialogue in a Divided World,’” it added.

Pakistan has repeatedly called for multilateralism and adherence to the United Nations Charter and international law, cautioning against the growing resort to force as global conflicts multiply and tensions simmer across regions.

Sharif is also expected to hold meetings with world leaders and business executives on the sidelines of the forum, where he will outline Pakistan’s views on global and regional peace and highlight the government’s economic vision, trade prospects and investment opportunities.

The visit comes as Pakistan looks to attract foreign investment and shift toward export-led growth after emerging from a prolonged economic crisis that depleted foreign exchange reserves, strained its balance of payments and sharply weakened the currency.

The government says macroeconomic indicators have improved, an assessment echoed by global credit rating agencies, as the country continues structural reforms under a $7 billion program with the International Monetary Fund.