Islamabad: 19th October, 2022

PRESS RELEASE

The Government of Pakistan, on 19th October, 2022 signed a Debt Service Suspension Agreement with the Japan International Cooperation Agency (JICA), amounting to deferment of payment of loans worth USD 172 million, under the G-20 Debt Service Suspension Initiative (DSSI) framework. 

This amount, initially repayable between July and December 2021 will now be repaid over a period of six years (including one-year grace period) in semi-annual instalments. 

The GOP has already signed agreements with JICA for suspension of USD 506 million. Due to the support extended by the development partners of Pakistan, the G-20 DSSI has provided the fiscal space which was necessary to deal with the urgent health and economic needs of the Islamic Republic of Pakistan. 

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

Pakistan has already concluded and signed 102 agreements with 21 bilateral creditors for the deferment of its debt repayments under the G-20 DSSI, amounting to suspension and deferment of almost USD 3,441 million. The signing of above-mentioned agreements brings this total to USD 3,613 million. Negotiations for remaining agreements to be signed under the G-20 DSSI are on-going.