ISLAMABAD – Pakistan is set to receive $873 million in debt relief from theParis Club of Creditor Nations.

According to the Paris Club, it is close to fully achieve theimplementation of the debt service suspension initiative of around $2.5billion with 36 countries.

Earlier in November, the Economic Coordination Committee of the cabinetallowed the economic affairs division to proceed with the formal requestfor availing the G-20 debt relief for the extended period from January toJune 2021 under the Covid support.

The Paris Club members are open to extending the DSSI implementation phaseby another six months. This option will begin if the economic and financialsituation doesn’t improve before the 2021 spring meetings of the World Bankand International Monetary Fund (IMF).

This framework provides a major breakthrough in the international financialarchitecture that will strengthen the bond between Paris Club and other G20creditors at a time when debt vulnerabilities are high; particularly inlow-income countries like Pakistan.