G-20 DSSI framework: Two $197.49m debt service suspension pacts signed

ISLAMABAD: The government of Pakistan Wednesday signed two Debt Service Suspension Agreements amounting to suspension of loans worth $197.49 million, under the G-20 Debt Service Suspension Initiative (DSSI) framework.

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 the 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.

Forex, PSEs and banks liabilities not included: $88.8bn external debt recorded at end of March

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

Copyright Business Recorder, 2022