Pakistan has signed an agreement with the Japan International Cooperation Agency for deferment of payment of loans worth 172 million dollars, under the G-20 Debt Service Suspension Initiative (DSSI) framework.

The amount, initially repayable between July and December last year will now be repaid over a period of six years (including one-year grace period) in semi-annual instalments.

The government has already signed agreements with JICA for suspension of 506 million dollars payment.

The G-20 has provided the fiscal space to Pakistan which is necessary to deal with the urgent health and economic needs of the country.

The total amount of debt that has been suspended under the DSSI framework, covering the period from May 2020 to December 2021, stands at 3,686 million dollars.

Pakistan has already signed 102 agreements with 21 bilateral creditors for the deferment of its debt repayments under the G-20 Initiative amounting to suspension and deferment of almost 3,441 million dollars.

Negotiations for remaining agreements to be signed under the G-20 Initiative are also going on.

Source: Radio Pakistan