Pakistan and Germany signed an agreement on Thursday for suspension of debt service of 26.213 million euro under the Debt Service Suspension Initiative (DSSI).
According to a report by Dawn, the signing of the agreement coincides with the forthcoming celebrations for 60-year development cooperation between Pakistan and Germany.
KfW maintains an active portfolio of more than 600 million euro financial cooperation with Pakistan in the fields of energy, climate, governance, training and jobs creation for sustainable economic growth.
The signing of DSSI will contribute to the much-needed relief for the Pakistan government to strengthen its economy in view of the challenging financial conditions triggered by Covid-19.
The German government is also in the process of providing another debt suspension facility (DSSI Phase-3) to Pakistan for which matters are currently under discussion, said a German Embassy’s press release.
