Pakistan gets temporary relief of $3.68 billion from G-20 countries

The Ministry of Economic Affairs stated that the Government of Pakistan and the French Republic on Monday signed an agreement as part of the G20 Debt Service Suspension Initiative (DSSI).

The government signed a DSSI, which amounted to the suspension of loans totaling $107 million under the G20 DSSI framework, according to a statement made in this regard by the ministry, according to Profit.

This sum, which was initially due between July and December 2021, will now be paid back over a six-year period (plus a one-year grace period) in semi-annual installments, according to the statement.

Federal Secretary for Economic Affairs Division Mian Asad Hayaud Din and French Ambassador to Pakistan Nicolas Galey signed the agreement today in Islamabad.

Agreements for the revocation of $261 million between the government and the French Republic have already been signed.

The ministry mentioned that the G20 DSSI has provided the fiscal space required to address the immediate health and financial demands of the Islamic Republic of Pakistan as a result of the support given by Pakistan’s development partners.

According to the ministry, $3,688 million in debt has been suspended and rescheduled overall under the DSSI framework, which covers the period from May 2020 to December 2021.

Pakistan has so far reached 93 agreements and signed them with 21 bilateral creditors for the restructuring of its liabilities under the G20 DSSI framework, totaling a delay of nearly $3,150 million.

The above-mentioned agreements have been signed, bringing the total to $3,257 million. The G20 DSSI’s remaining agreements are currently the subject of negotiations.