Pakistan government has signed a Debt Service Suspension Agreement with the Republic of Korea to defer loans worth $19.911 million, under the G-20 Debt Service Suspension Initiative (DSSI) framework.
As per a statement released by the Ministry of Economic Affairs on Monday, the amount, which initially had to be repaid between July and December 2021, would now be repaid over a period of six years (including one-year grace period) in semi-annual instalments.
“Due to the support extended by the development partners of Pakistan, the G-20 DSSI has provided the fiscal space which was necessary to deal with urgent health and economic needs of the Islamic Republic of Pakistan,” read the statement.
G-20 DSSI: Pakistan signs debt suspension agreements worth $197mn
The ministry shared that the total amount of debt, which is to be suspended under the DSSI framework covering the period of repayment from May 2020 to December 2021, stands at $3,686 million.
“Pakistan has already concluded and signed 104 agreements with 21 bilateral creditors for the deferment of its debt repayments under the G-20 DSSI, amounting to $3,633 million,” the ministry said, adding that the signing of the latest agreement with South Korea brings this total to $3,653 million.
“Negotiations for the remaining agreements to be signed under the G-20 DSSI are on-going,” it added.