June 1, 2002	Saturday	Rabi-ul-Awwal 19,1423

ISLAMABAD, May 31: Pakistan and the United States will ink $3 billion debt reprofiling accord in June under Paris Club arrangement.

“Three more debt rescheduling pacts worth over $1.5 billion are expected to be signed with Germany, Canada and Finland this month, completing debt agreements with four creditor countries worth $4.5 billion in June,” well-placed sources told APP here on Friday.

Under the Paris Club agreement, bilateral debt stock valuing $12.5 billion Pakistan owes to 18 creditor countries, has been reprofiled for 38 years with 15 years grace period.

Through Paris Club agreement, Pakistan will have to pay only moratorium interest, to be finally negotiated in the agreements, in the grace period of 15 years sans any principal repayment, the sources added.

Substantial financial cushion, to be annually reaped by Pakistan as a result of unprecedented reprofiling of whole bilateral debt stock, the sources said, would enable the country to divert sizable chunk of resources to the social sector development projects.—APP