The Economic Coordination Committee (ECC) of the cabinet allowed the Ministry of Economic Affairs to sign 15 debt rescheduling agreements worth $395.96 million with a number of credit countries under Debt Service Suspension Initiative (DSSI).
The meeting of ECC was held under the chair of Federal Minister for Finance and Revenue Shaukat Tarin.
Economic Affairs Division (EAD) has negotiated 15 agreements with Italy, Japan, Uk, Austria, France, Korea, Netherland, Sweden, Switzerland and Saudi Arabia, debt worth $395.96 million will be suspended for January to June 2021 period.
It is pertinent to note that the G-20 finance ministries in their meeting held in April 2020 announced debt relief for IDA eligible countries to mitigate the socio economic impact of Covid-19, known as DSSI-1.
The ECC in its meeting held on May 20, 2020 approved the proposal and authorized EAD to apply for debt relief and proceed with signing of MoI with creditor countries.
The EAD informed the ECC that 31 debt rescheduling agreements with 19 creditor countries worth $1.6 billion have been signed and negotiations for finalization of debt rescheduling agreements with UAE are currently underway.
According to the finance ministry handout, the EAD submitted a summary on G-20 Debt Service Suspension Initiative. The ECC allowed the Ministry of Economic Affairs to sign 15 debt rescheduling agreements with various credit countries, finalized under Debt Service Suspension Initiative (DSSI).
