Pakistan on Sunday said it will not seek debt restructuring from Paris Club creditor nations amid concerns that the cash-strapped nation could default on its foreign debt as it contends with economic turmoil and a balance of payments crisis.

Finance Minister Ishaq Dar made the statement at a press conference days after rating agency Moody's last week downgraded Pakistan's credit rating from B3 into junk territory at Caa1, citing external risks and concerns about its ability to secure required financing to meet its needs in the next few years.

Dar said the main reason behind the rating agency's move was concerns that Pakistan was seeking the rescheduling of the USD 10 billion debt owed to the Paris Club a group of wealthy creditor nations.

We have made a very conscious decision that we will not approach the Paris Club. We will manage our matters and we will pay off liabilities of multilateral lenders on time, he said.

Dar also assured that Pakistan would make payments of bonds that are maturing in December, dismissing reports that the country was going to postpone the payments for the international bonds.

The price of Pakistan's US dollar-denominated global bonds Eurobond and Sukuk slumped last month while their yields skyrocketed after Prime Minister Shehbaz Sharif appealed for debt relief from rich nations to cope with the flood-hit economy.

The appeal was interpreted by investors as an indication that Pakistan was going to default on foreign debt repayments.

Dar had earlier said that the country will meet the requirement to raise nearly USD 35 billion in external financing for the 2022-23 financial year.

He also said that the country was not planning any renegotiation with the International Monetary Fund (IMF) and will fulfil its obligations with the global money lender.

Prime Minister Shehbaz Sharif last month had made an appeal to the Paris Club for a debt moratorium after the country's already struggling economy was hit by devastating floods that the government estimates will cause economic losses of up to USD 30 billion.

Nearly 33 million people have been affected and 7.9 million displaced in the recent flood caused by heavy monsoon rains in Pakistan.