ISLAMABAD, Dec 23: A high-level Debt Policy Coordination Office has been set up in the Ministry of Finance to deal with debt problems.

“The office will start functioning from January 2003,” said its newly appointed director general Dr Ashfaque Hasan Khan.

He told Dawn here on Monday that he had accepted the offer which was MP-1. However, he said he would continue to work as the economic adviser to the ministry of finance till the appointment of the new adviser.

Debt Reduction and Management Committee, headed by Dr Pervez Hasan, had proposed the creation of a high-level Debt Policy Coordination Office to also coordinate the preparation and regular updating of comprehensive macroeconomic framework.

The committee had also suggested that the proposed debt office should also submit an annual report on the implementation of the agreed debt strategy and provide leadership on debt data questions to all concerned agencies of the government and ensure compliance with agreed reporting requirements.

The debt office will be responsible to give policy advice on internal and external borrowing strategies and make recommendations on reducing the cost of borrowing.