Within the context of the G-20 Debt Service Suspension Initiative (DSSI), the government took the necessary steps on Monday to sign a Debt Service Suspension Agreement with the Republic of Korea. This agreement will result in a postponement of payments on loans totaling $19.911 million.
According to a press statement that was released by the Economic Affairs Division (EAD), this sum, which was originally required to be reimbursed between the months of July and December 2021, would now be repaid over the course of a period of six years (with a grace period of one year) in semi-annual payments.
The original due date of July through December 2021 has been extended to a six-year repayment schedule.
The G-20 Development and Stability help Instrument (DSSI) has made it possible for Pakistan to address its pressing economic and healthcare requirements by freeing up budgetary space. This was made possible by the help that Pakistan’s development partners have offered.
The overall amount of debt, which is to be suspended under the DSSI framework, encompassing the period of payback from May 2020 all the way through December 2021, is currently estimated to be $3,686 million.
Pakistan has already reached and signed 104 agreements with 21 bilateral creditors for the postponement of its debt repayments in accordance with the G-20 Debt Sustainability Stability Initiative. The total value of these agreements is $3,633 million.
The execution of the deal described above increases the grand amount to $3,653 million. Ongoing negotiations are taking on for the remaining agreements that need to be completed as part of the G-20 DSSI.