Pakistan sign ‘Debt Service Suspension Agreements’ of $197.49 million

APP07-150622 ISLAMABAD: June 15 - Federal Minister for Economic Affairs, Sardar Ayaz Sadiq witnesses the signing of the G-20 DSSI agreement with JICA (Japan). APP photo by Saleem Rana

ISLAMABAD, Jun 15 (APP):Pakistan has signed two ‘Debt Service Suspension Agreements’ on Wednesday amounting to suspension of loans worth USD 197.49 million, under the G-20 Debt Service Suspension Initiative (DSSI) frameworks.

According to the press release, the government of Pakistan has signed agreements with the Japan International Cooperation Agency (JICA) and the government of the Swiss Confederation under the G-20 Debt Service Suspension Initiative.

Of this total amount, USD 191.60 million were owed to JICA during the period from January to June 2021 and USD 5.89 million were owed to the Government of the Swiss Confederation during the period from July to December 2021.

These amounts will now be repaid over a period of six years (including one-year grace period) in semi-annual installments.

Due to the support extended by the development partners of Pakistan, including JICA and Government of the Swiss Confederation, the G-20 DSSI has provided the fiscal space which was necessary to deal with the urgent health and economic needs of the Islamic Republic of Pakistan.

The total amount of debt that has been suspended and rescheduled under the DSSI framework, covering the period from May 2020 to December 2021, stands at USD 3,688 million.

Pakistan has already concluded and signed 91 agreements with 21 bilateral creditors for the rescheduling of its debts under the G-20 DSSI framework, amounting to rescheduling of almost USD 2,953 million.

The signing of above-mentioned agreements brings this total to USD 3,150 million. Negotiations for remaining agreements to be signed under the G-20 DSSI are on-going.