Floods: Pakistan approaches G-20 nations to defer debt payments

ISLAMABAD: Pakistan has approached G-20 countries for relief in debt payments as the country faces devastating floods that have killed more than 1,000 people and displaced millions, ARY NEWS reported.

According to sources privy to the matter, six agreements with Japan, Italy and Spain will be finalized during the ongoing month for debt relief and it will help in deferring payments of US$189.5 million.

During the third session, G-20 countries have deferred debt payments of US$947 million and after agreements with the three countries, the sources said that the relief will reach US$1.13 billion.

The sources within economic affairs division said that the relief will include deferment of the US$3.1 million debt from Spain, US$1.1 million from Italy and US$180 million from Japan.

In June 2022, the global debt payments suspension initiative by the G-20 countries provided temporary relief of around $3.68 billion to Pakistan.

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Pakistan and France inked an agreement deferring payment of $107million. The agreement was signed by the Secretary of Economic Affairs Division, Mian Asad and France’s envoy Nicolas Galey.

The press statement released by the Economic Affairs Division stated that Pakistan has also inked loan deferred agreements with G-20 countries worth $3.68 billion. The loan amount was to be paid between July to December 2021.