AGL 7.18 Increased By ▲ 0.15 (2.13%)
ANL 10.77 Increased By ▲ 0.02 (0.19%)
AVN 77.00 Decreased By ▼ -0.30 (-0.39%)
BOP 5.49 No Change ▼ 0.00 (0%)
CNERGY 5.29 Increased By ▲ 0.03 (0.57%)
EFERT 88.90 Increased By ▲ 0.40 (0.45%)
EPCL 74.60 Decreased By ▼ -0.30 (-0.4%)
FCCL 13.60 Decreased By ▼ -0.05 (-0.37%)
FFL 6.64 Increased By ▲ 0.02 (0.3%)
FLYNG 7.19 No Change ▼ 0.00 (0%)
GGGL 11.00 Increased By ▲ 0.10 (0.92%)
GGL 16.60 Increased By ▲ 0.08 (0.48%)
GTECH 8.69 No Change ▼ 0.00 (0%)
HUMNL 6.92 Decreased By ▼ -0.02 (-0.29%)
KEL 2.88 Increased By ▲ 0.02 (0.7%)
LOTCHEM 25.57 Increased By ▲ 0.32 (1.27%)
MLCF 25.80 Increased By ▲ 0.01 (0.04%)
OGDC 77.50 Increased By ▲ 0.10 (0.13%)
PAEL 15.70 Increased By ▲ 0.08 (0.51%)
PIBTL 6.04 Increased By ▲ 0.06 (1%)
PRL 16.95 Decreased By ▼ -0.24 (-1.4%)
SILK 1.26 No Change ▼ 0.00 (0%)
TELE 10.75 No Change ▼ 0.00 (0%)
TPL 9.15 Increased By ▲ 0.05 (0.55%)
TPLP 19.86 Increased By ▲ 0.01 (0.05%)
TREET 28.75 Decreased By ▼ -0.03 (-0.1%)
TRG 77.20 Increased By ▲ 0.19 (0.25%)
UNITY 19.93 Decreased By ▼ -0.01 (-0.05%)
WAVES 12.60 Decreased By ▼ -0.05 (-0.4%)
WTL 1.38 No Change ▼ 0.00 (0%)
BR100 4,080 Increased By 8.2 (0.2%)
BR30 14,919 Increased By 28.8 (0.19%)
KSE100 41,224 Increased By 64.2 (0.16%)
KSE30 15,680 Increased By 19.9 (0.13%)

ISLAMABAD: The government of Germany, through KfW (the German Development Bank) and the government of Pakistan, represented by the Ministry of Economic Affairs signed an agreement for the Debt Service Suspension Initiative (DSSI Phase-II) for Euro 26.213 million.

Following the original request of the Government of Pakistan for a time-bound suspension of debt service in order to mitigate the health, economic and social impact of the Covid19-crisis, the memorandum of understanding (MOU) on the Treatment of the Debt Service was signed on 9 June 2020 in Paris.

Signing of the DSSI will contribute to the much-needed relief to the Government of Pakistan to strengthen its economy in view of the challenging financial conditions faced under the Covid-19 situation. In September 2020, the Government of Germany, through KfW, had already provided a debt suspension facility to the Government of Pakistan through the DSSI Phase-I, amounting to Euro 52.766 million. The signing of this agreement coincides with the forthcoming celebrations for the 60 years of Pakistan-Germany development cooperation.

German development bank could lose 100mn euros from Wirecard insolvency

KfW maintains an active portfolio of more than Euro 600 million financial cooperation with Pakistan in the fields of energy and climate, governance, and training and jobs creation for sustainable economic growth.

The Government of Germany is also in the process of providing another debt suspension facility (DSSI Phase-3) to the Government of Pakistan for which matters are currently under discussion. Economic Affairs officials told Business Recorder (BR) that the first step is government of Pakistan formal request for debt suspension for each phase, which is always done immediately after approval of the ECC.

The second step is signing of MoU, said the officials, adding that third step is lengthy which includes signing of separate agreements with each country and even multiple agreements with one country. Economic Affairs officials told BR that total fiscal impact of DSSI (all phases) will be of $3.785 billion from bilateral development partners.

Copyright Business Recorder, 2021

Comments

Comments are closed.