Pakistan will get around $1 billion relief under the third phase (July-December 2021) of the Debt Service Suspension Initiative (DSSI) by G-20 countries, the economic affairs ministry said on Friday.
This includes $785 million worth of pause on principal loan repayments and the remaining on account of interest repayments.
An International Monetary Fund (IMF) staff report has put the relief amount under first two phases at $2.5 billion. This has brought the total temporary relief to $3.5 billion under three phases.
“The debt relief will provide much needed fiscal space for mitigating the socioeconomic impact of Covid-19, and meet urgent health and economic needs of the country,” said Federal Minister for Economic Affairs Khusro Bakhtiar
The G-20 finance ministers and central bank governors in a joint communiqué have announced a final 6-months extension in Debt Service Suspension Initiative from July to December 2021. Bakhtiar has welcomed the announcement.
The ministry said that Pakistan would likely get a debt suspension of about $900 million to $1 billion from bilateral creditors under DSSI Phase-III.
