Pakistan Gets $367 million Debt Relief from Japan
In accordance with the G-20 Debt Service Suspension Initiative, the governments of Pakistan and Japan have signed debt suspension agreements totaling $367 million (Phase-I).
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During COVID-19, the G20 nations and Paris Club creditors unveiled the Debt Service Suspension Initiative (DSSI), which aims to give strained nations the much-needed fiscal breathing room they require to address their immediate economic and health requirements.
Using this opportunity, the Pakistani government began talks with 21 creditor nations for the suspension of $1.6 billion in debt as part of DSSI Phase-I. (April – December 2020).
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The Secretary, EAD expressed his gratitude for the debt suspension from the Japanese government once more on this occasion. He emphasized that Japan is Pakistan’s second-largest bilateral lender.
Ambassador Matsuda also reiterated Japan’s support for Pakistan on matters of shared interest during his remarks at the event.
He continued by saying that Japanese economic aid has played and would continue to play a crucial part in Pakistan’s socio economic development. Both parties reaffirmed their steadfast commitment to strengthening their current level of economic cooperation.
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