ISLAMABAD – Under the G-20 Debt Service Suspension Initiative, Pakistan signed two debt service suspension agreements for $197.49 million on Wednesday (DSSI).
According to a news release, Pakistan’s government has inked agreements with the Japan International Cooperation Agency (JICA) and the Swiss Confederation’s government.
Approximately $91.60 million was owed to JICA between January and June 2021, and $5.89 million was owed to the Swiss Confederation government between July and December 2021.
According to the statement, these funds will now be repaid in semi-annual installment payments over a six-year period (including a one-year grace period).
“The G-20 DSSI has provided the fiscal space necessary to deal with Pakistan’s urgent health and economic needs,” it added, citing support from Pakistan’s development partners, including JICA and the Swiss Confederation’s government.
The entire amount of debt suspended and rescheduled under the DSSI framework from May 2020 to December 2021 is $3,688 million.
Under the DSSI framework, Pakistan has already reached and signed 91 agreements with 21 bilateral creditors for the rescheduling of debt totaling about $2,953 million.
