ISLAMABAD: The Government of Pakistan signed a Debt Service Suspension Agreement on May 15, 2023, with the Republic of Korea, deferring payment of loans totaling USD 19.911 million under the G-20 Debt Service Suspension Initiative (DSSI) framework.
This amount, which was initially scheduled to be reimbursed between July and December 2021, will now be repaid in semi-annual installments over a six-year period (including a one-year grace period).
Because of the support offered by Pakistan’s development partners, the G-20 DSSI has provided the fiscal flexibility required to address the Islamic Republic of Pakistan’s urgent health and economic needs.
The total amount of debt suspended under the DSSI framework, spanning the repayment period from May 2020 to December 2021, is USD 3,686 million.
Pakistan has signed 104 agreements
Pakistan has already concluded and signed 104 agreements with 21 bilateral creditors under the G-20 DSSI to delay debt repayments totaling USD 3,633 million.
With the signing of the aforementioned agreement, the total amount now stands at USD 3,653 million. The remaining agreements to be signed under the G-20 DSSI are still being negotiated.
