Pakistan, Italy extend debt swap deal for development projects

By Staff Reporter

ISLAMABAD: Pakistan and Italy have agreed to extend a debt swap deal that allows Pakistan to use part of its debt to Italy for development projects, the two countries said on Thursday.

The Pakistan-Italian Debt Swap Agreement (PIDSA), signed in 2006 and effective since 2009, will now run until Dec. 31, 2024, according to an exchange of letters between the Italian ambassador in Pakistan, Andreas Ferrarese, and the secretary of the Ministry of Economic Affairs.

The deal covers about $100 million of Pakistan’s debt to Italy, which can be spent on health, education, agriculture, environment, microcredit, poverty alleviation, rural development and infrastructure projects.

So far, 48 projects have been approved and funded by PIDSA, of which 45 have been completed and three are ongoing, the statement said.