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Cash-strapped Naya Pakistan eyes $1 billion debt relief from G-20

Story highlights The debt relief will provide much-needed fiscal space to mitigate the socio-economic impact of the COVID-19 pandemic and meet the urgent economic needs of the country, said Federal Minister for Economic Affairs Khusro Bakhtiar Imran Khan-led Pakistan government is expected to get another $1 billion relief in loans this year from the G20, reported the Express Tribune.  Pakistan’s Economic Affairs Ministry said the relief would be covered under the third phase of the G20’s Debt Service Suspension Initiative. The Islamic Republic will receive this debt relief under the third phase of the Debt Service Suspension Initiative (DSSI) by the G20 countries.

Pakistan hoping for USD 1 billion debt relief from G-20

Pakistan eyes another $1b debt relief from G-20

Pakistan eyes another $1b debt relief from G-20 Bakhtiar says Debt Service Suspension Initiative Phase III to provide fiscal space to mitigate Covid impact Loan. PHOTO: REUTERS ISLAMABAD: The global debt payments suspension initiative has provided a temporary relief of around $3.5 billion to Pakistan and one-third of the relief has come from China, reducing immediate borrowing requirements by the same amount. Under the third-phase (July-December 2021) of the Debt Service Suspension Initiative (DSSI) by the G-20 countries, Pakistan will get around $1 billion relief, 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.

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