In the wake of severe flooding, Pakistan‘s finance minister stated on Friday that the South Asian country was looking for debt relief from bilateral creditors. However, he emphasised that the government would not be looking for assistance from commercial banks or Eurobond creditors.
Pakistan’s bonds had fallen throughout the day to just half their face value after the Financial Times reported that a UN development agency was pleading with the cash-strapped nation to restructure its debt.Worries that Pakistan wouldn’t be able to pay its debts were stoked last month when devastating floods ravaged significant portions of the country, killing more than 1,500 people and causing $30 billion in damage.
