South Korea, Pakistan ink MoU for external debt rescheduling

ISLAMABAD: Secretary of the Ministry of Economic Affairs, Mian Asad Hayaud Din and the Ambassador of the Republic of Korea, Suh Sangpyo have signed an agreement here for the rescheduling of external debt of Pakistan owed to the Republic of Korea for the year 2020 and first half of year 2021.

The agreement comes following months of negotiations leading up to the Memorandum of Understanding on the Treatment of Debt Service and its amendment signed between the Republic of Korea and Pakistan in June and December, 2020, respectively.

It is pertinent to mention here that the International Monetary Fund (IMF) and the World Bank called on all official bilateral creditors to suspend debt payments from the International Development Association (IDA) countries in March, 2020 by the G20 Finance Ministers agreement on the Debt Service Suspension Initiative (DSSI) in April, 2020 and the concerns expressed by the Paris Club regarding the economic and social impact of COVID-19 crisis on the poorest countries of the world.

The ambassador spoke at the ceremony that the Republic of Korea stands by Pakistan and aims to enhance bilateral economic relationship between the two countries.

Mian Asad Hayaud Din appreciated the ambassador for paving the way for this agreement and thanked Korea for it everlasting support to Pakistan.

In the side-lines of the signing ceremony, the ambassador additionally met with the Additional Secretary of the Ministry of Economic Affairs, Zulfiqar Haider Khan and discussed matters of mutual interests.

Mian Abrar
Mian Abrar
The writer heads Pakistan Today's Islamabad Bureau. He has a special focus on counter-terrorism and inter-state relations in Asia, Asia Pacific and South East Asia regions. He can be reached at [email protected]

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