Govt enters into negotiations with 22 creditor countries for $1.7b debt suspension.

ISLAMABAD -- Pakistan on Tuesday entered into negotiations with 22 creditor countries for debt suspension amounting to $1.7 billion.

The G20 countries, together with the Paris Club creditors, had announced a Debt Service Suspension Initiative (DSSI) to provide much needed fiscal space to stressed countries in their fight against COVID-19. Taking advantage of this initiative, the government of Pakistan has entered into negotiations with 22 creditor countries for debt suspension amounting to $1.7 billion.

The Government of Pakistan has successfully negotiated and concluded rescheduling agreements with 19 bilateral creditors, including members of the Paris Club. Debt rescheduling agreements were signed with France, Switzerland and China by the Economic Affair Division at Islamabad. The signing ceremony was witnessed by senior embassy officials of these countries. On this occasion, Secretary Economic Affairs Division appreciated the debt suspension support provided by the G20 and Paris Club countries. He said, it was timely and had helped Pakistan save lives and livelihoods of millions during the difficult COVID-19 times.

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The federal cabinet had recently granted approval to the Economic Affairs Division to sign agreements with 16 countries over the rescheduling of G-20 loans.

The EAD had submitted that G-20 countries had deferred payments on loans worth $1.7 to $2 billion given to Pakistan during the period of May-December this year. The decision to defer loans and facility payments was taken in view of the coronavirus pandemic and will...