ISLAMABAD: Pakistan and Italy have agreed to extend the timeline of the Pakistan-Italian Debt Swap Agreement (PIDSA) through an Exchange of Letters (EoL). The extension, signed by Andreas Ferrarese, the Italian Ambassador in Pakistan, and the Secretary of the Ministry of Economic Affairs, extends the PIDSA timeline until December 31, 2024, based on the procedures, modalities, terms, and conditions outlined in the original Agreement signed on November 4, 2006.
During this extended period, the remaining activities under PIDSA will be completed, including the cancellation of the remaining debt, the finalization of ongoing PIDSA projects, the transfer of assets, the impact evaluation of the PIDSA Programme, and the submission of the final report on the PIDSA Programme.
Pakistan-Italian Debt Swap Agreement
The Pakistan-Italian Debt Swap Agreement, which came into force in 2009, involves swapping approximately $100 million (US $26.52 million & Euro 58.74 million) equivalent to PKR 8.276 billion of Pakistan’s debt owed to Italy for expenditure on various development projects in Pakistan.
These projects focus on areas such as health, education, agriculture, environment, micro-credit schemes, poverty alleviation, rural development, and infrastructure. The Management Committee (MC), chaired by the Italian Ambassador and the Secretary of the Ministry of Economic Affairs, oversees the implementation of PIDSA, with representatives from the federal and provincial governments.
Under PIDSA, 48 projects have been approved and funded, of which 45 projects have already been completed, and 3 are currently in progress. The extension of the timeline will allow for the successful completion of the remaining projects and the overall evaluation of the impact of the PIDSA Programme.
The Secretary of the Ministry of Economic Affairs expressed gratitude to the Government of Italy for their assistance under the Debt Swap Agreement and other technical assistance. He emphasized the importance of further enhancing bilateral ties between Pakistan and Italy.
