Pakistan seek huge debt relief from the Paris Club of Creditor Nations

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Pakistan seek huge debt relief from the Paris Club of Creditor Nations

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

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

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

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

This framework provides a major breakthrough in the international financial architecture that will strengthen the bond between Paris Club and other G20 creditors at a time when debt vulnerabilities are high; particularly in low-income countries like Pakistan.