PARIS: Pakistan will gain respite from foreign repayments, although not on interest, till July 1973, and secure about 200 million dollars’ worth of urgently needed commodity aid for the current year under a package deal discussed today [May 26] by the 11-nation Aid Consortium at the European headquarters of the World Bank in Paris. The regularisation of a moratorium on the repayment of the foreign loans, which was declared by Pakistan unilaterally in May last year for a period of 26 months, would greatly ease the burden of servicing foreign debts which is currently costing 234 million dollars annually. …

An agreement on the foreign aid repayment and the commodity assistance, expected to emerge from the Consortium meeting tonight, will greatly help Pakistan’s economy and improve the relations between Pakistan and the member countries of the Consortium. The Pakistan delegation to the Consortium meeting here is led by Mr M.M. Ahmad, Presidential Adviser on Foreign Loans. Several members were able to indicate the magnitude of assistance — primarily commodity aid — they were prepared to give… . This marks the first move towards resumption of economic aid to Pakistan which was suspended last June. — Chief overseas correspondent

Published in Dawn, May 27th, 2022