On Monday, the Republic of Korea decided to postpone Pakistan’s loan worth $19.911 million under the G-20 Debt Service Suspension Initiative (DSSI) framework.
Initially scheduled for repayment between July and December 2021, the loan will now be repaid over a six-year period, including a one-year grace period, in semi-annual installments. The Economic Affairs Division (EAD) issued a press release stating these details.
Pakistan has received crucial support from its development partners, enabling the G-20 DSSI to create fiscal space to address the country’s urgent health and economic requirements. The total debt amount to be suspended under the DSSI framework, covering the repayment period from May 2020 to December 2021, reaches $3,686 million.
Thus far, Pakistan has successfully concluded and signed 104 agreements with 21 bilateral creditors, amounting to $3,633 million in deferred debt repayments under the G-20 DSSI.
With the recent signing of the aforementioned agreement, the total deferred amount reaches $3,653 million. Negotiations are currently underway for the remaining agreements to be signed under the G-20 DSSI.
