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Pakistan to Opt in New Program for Debt Relief

Pakistan is embarking on a debt-for-nature swap scheme with lending nations. In exchange for legally enforceable obligations to meet conservation goals, such an arrangement would assist Pakistan in paying down its debt, according to recent reports from the involved officials.

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Without providing any other information on the debtors, he continued by saying that Pakistan is also hosting World Environment Day this year. The talks over the specifics, he claimed, were still going on.

Pakistan has the largest outstanding bilateral debt with China, followed by Japan in second place, the United Arab Emirates (UAE), France, and Germany, according to an IMF study published last month.

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There is a global movement to reorient finance toward the dual goals of preserving the environment and easing the burden of national debt.

This is not Pakistan’s first significant environmental initiative of the year. Additionally, Pakistan has stated that it intends to issue its first green bond for $500 million. Within a few weeks, the bonds should go on sale.

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