Govt inks $197.5m debt suspension agreements

Amount will be repaid over period of six years

ISLAMABAD:

Pakistan on Wednesday signed two debt service suspension agreements amounting to $197.49 million under the G-20 Debt Service Suspension Initiative (DSSI).

The government of Pakistan has signed agreements with the Japan International Cooperation Agency (JICA) and the government of Swiss Confederation, said a press release.

Around $91.60 million was owed to JICA during the period from January to June 2021 and $5.89 million was owed to the government of Swiss Confederation during the period from July to December 2021.

According to the statement, these amounts will now be repaid over a period of six years (including a one-year grace period) in semi-annual installments.

“Due to the support extended by the development partners of Pakistan, including JICA and the government of Swiss Confederation, the G-20 DSSI has provided the fiscal space necessary to deal with the urgent health and economic needs of Pakistan,” it added.

The total debt suspended and rescheduled under the DSSI framework, covering the period from May 2020 to December 2021, stands at $3,688 million.

Pakistan has already concluded and signed 91 agreements with 21 bilateral creditors for the rescheduling of debt amounting to almost $2,953 million under the DSSI framework.

Published in The Express Tribune, June 16^th, 2022.

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