MM News

ISLAMABAD: Finance Minister Ishaq Dar has responded to a story, published by Bloomberg titled “Markets brace for Pakistan default risk as $7 billion debt looms,” in which in says that bondholders are bracing for a potential default by Pakistan as the beleaguered nation struggles to meet billions of dollars in debt repayments by June. It further said that “Pakistan’s dollar bonds due next year slid to the lowest since November on Thursday as investors weighed its ability to honor $7 billion of repayments in the coming months, including a Chinese loan of $2 billion due in March, according to Fitch Ratings.”

Also read: Markets brace for Pakistan default risk as $7 billion debt looms: Bloomberg

Taking to Twitter on Friday, Ishaq Dar re-produced a screenshot of a reply to Bloomberg by Chinese Foreign Ministry spokesperson, saying “reflects the depth of friendship between the two countries and beyond.”

Chinese Foreign Office’s below reply to Bloomberg on 2nd March 2023 reflects the depth of friendship between the two countries and beyond… pic.twitter.com/z3NOo6zIOo

— Ishaq Dar (@MIshaqDar50) March 3, 2023

During the conversation, Bloomberg asked “both Moody’s and Fitch say Pakistan has $7 billion of debt due by June, including those from China. 5,51 will the loans be rolled over?

Responding to Bloomberg’s question, Chinese Foreign Ministry spokesperson Mao Ning said “I will refer you to the competent Chinese authorities for the specifics. To give you our principled position, China and Pakistan are all-weather strategic and cooperative partners and iron brothers. The two sides have always shared weal and woe together and supported each other. China has been in close economic and financial cooperation with Pakistan and supported its efforts to maintain economic stability, improve lives and achieve self-generated development.”

She further said “I need to point out that the radical financial and monetary policies of a certain developed country and their serious spillover effects are the primary cause of the financial difficulties experienced by Pakistan and many other developing countries. The Western-dominated commercial creditors and multilateral financial institutions account for the lion’s share of developing countries’ debt. China calls on concerted efforts from all parties to play a constructive role in Pakistan’s economic and social stability efforts.”