Pakistan secures $370mn debt relief from Japan
- By Web Desk -
- Apr 27, 2021
ISLAMABAD: Pakistan and Japan on Tuesday inked debt suspension agreements amounting to $ 367 million under the G-20 debt service suspension initiative, ARY News reported.
Economic Affairs Division (EAD) secretary and Japan’s ambassador to Pakistan Kuninori Matsuda signed the agreements in Islamabad today. Under the accord, the government of Pakistan will repay the suspended amount in 4-years starting January, 2022.
On the occasion, EAD secretary reiterated his appreciation for the debt suspension provided by the Japanese government. He also thanked the government of Japan for its generous support for fighting against COVID-19 pandemic.
Japan’s ambassador Matsuda also reaffirmed Japanese support to Pakistan on issues of mutual interest. “Japanese economic assistance has played and shall continue to play a vital role in the socio-economic uplift of Pakistan,” he added.
On the occasion, both sides reiterated a strong commitment towards further expanding bilateral economic cooperation.
In the wake of COVID-19, the G20 countries, together with the Paris Club creditors, announced a Debt Service Suspension Initiative (DSSI) to provide much-needed fiscal space to stressed countries in order to meet their urgent economic and health needs.
The government of Pakistan, taking advantage of this initiative, entered into negotiations with 21 creditor countries for debt suspension amounting to $1.6 billion.