$20m debt deferment pact signed with South Korea
Pakistan on Monday signed a debt relief agreement with the Republic of Korea (RoK) for the deferment of repayment of about $20 million loan under the G-20 Debt Service Suspension Agreement (DSSI) offered to poor nations to sustain economic challenges in the aftermath of Covid-19 pandemic. The agreement was signed by Secretary of Economic Affairs Dr Kazim Niaz and Ambassador of Korea to Pakistan Suh Sangpyo on Monday. The total amount of Pakistan’s external debt that has been suspended and rescheduled under the DSSI framework, covering the period from May 2020 to December 2021, is about $3.688 billion. Pakistan was originally required to repay $19.91m to ROK between July and December 2021. The amount would now be repaid over six years (including a one-year grace period) in semi-annual instalments. Due to the support extended by the development partners of Pakistan, the G-20 DSSI has provided the fiscal space necessary to deal with the urgent health and economic needs of the country.