ISLAMABAD: Pakistan and Japan on Tuesday signed debt suspension agreements amounting to $367 million under G-20 phase one Debt Service Suspension Initiative.
Economic Affairs Division Secretary Noor Ahmed and Ambassador of Japan to Pakistan Kuninori Matsuda signed the agreements in Islamabad. The signing ceremony was witnessed by senior officials of Japanese Embassy.
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 under DSSI Phase-I. Pakistan will repay the suspended amount in four years starting January 2022.
On this occasion, Noor Ahmed reiterated his appreciation for the debt suspension provided by Japan. He highlighted that Japan is the second largest bilateral lender to Pakistan. He also acknowledged continued support of Japan for health, education, agriculture, infrastructure, disaster management and urban services including water supply, sanitation and waste management.
While speaking on the occasion, Ambassador Matsuda also reaffirmed Japanese support to Pakistan on issues of mutual interest.
Both sides reiterated strong commitment towards further expanding bilateral
