Italy converts $10 million Pakistan’s debt into aid

By SPA

Islamabad : Italy has converted $10 million Pakistan’s debt into aid for development in the social sector, officials said.

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Italian Ambassador Vincenzo Prati said Pakistan would use the money over five years. He said that according to the agreement Pakistan would deposit 20 percent of the total debt amount in a special account every year.

Prati said that under the initial 2003 agreement, Italy had waived half of the debt, and converted the remaining $110 million into aid for social sector development.

The ambassador said that Italy wanted the aid to be spent in the underdeveloped areas of Pakistan. He said the money would be spent through UN agencies, non-government organisations and relevant Pakistani government departments.