Under the G-20 Debt Service Suspension Initiative (DSSI) Framework, the Economic Affairs Division of the Government of Pakistan and the Saudi Fund for Development (SFD) signed two Debt Service Suspension Agreements totaling US$ 846 million.
Nawaf bin Saeed Al-Malkiy, the Kingdom of Saudi Arabia’s ambassador to Pakistan, was present at the signing ceremony in Islamabad. Dr. Saud Ayid R. Alshammari, Director-General for Asia, represented SFD at the signing ceremony.
This sum, which was to be paid during the testing period from May 2020 to December 2021, will now be repaid in semi-annual instalments over a six-year period beginning in 2022.
Because of the assistance provided by SFD, one of Pakistan’s major bilateral development partners, as well as other bilateral creditor countries, the G-20 DSSI has provided the fiscal space required to address Pakistan’s urgent health and socioeconomic needs.
The total amount of debt suspended and rescheduled under the DSSI framework is US$ 3,688 million, covering the period from May 2020 to December 2021.
Pakistan has already concluded and signed 80 agreements with 21 bilateral creditors for debt rescheduling under the G-20 DSSI framework, totaling US$ 2,088 million in rescheduling.
The signing of agreements with SFD brings the total rescheduled amount to US$ 2,934 million, with negotiations underway for the remaining US$ 754 million. This amount is expected to be agreed upon with respective bilateral development partners during the current fiscal year.
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