Debt suspension deal with Korea signed

The repayment will now be spread over six years, with a one-year grace period, in semi-annual instalments

ISLAMABAD:

Pakistan and Korea have signed a Debt Service Suspension Agreement. This agreement allows for the deferment of loan payments worth $19.911 million under the G-20 Debt Service Suspension Initiative (DSSI).

Originally scheduled to be repaid between July and December 2021, the repayment will now be spread over six years, with a one-year grace period, in semi-annual installments, said the Economic Affairs Division (EAD).

The G-20 DSSI has played a crucial role in providing fiscal space to Pakistan, thanks to the support extended by its development partners. This fiscal space has been vital in addressing the urgent health and economic needs. Under the DSSI framework, a total debt suspension of $3,686 million will cover the repayment period from May 2020 to December 2021.

Published in The Express Tribune, May 16^th, 2023.

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