Islamabad: The Pakistani government has successfully negotiated and re-arranged agreements with 19 bilateral creditors including members of the Paris Club.
The Ministry of Economic Affairs said in a press release issued here on Monday that the Pakistani government used this initiative to negotiate with 21 creditor countries to suspend US$1.7 billion in debt.
The Islamabad Ministry of Economic Affairs has signed debt restructuring agreements with France, Switzerland and China.
Senior embassy officials of these countries witnessed the signing ceremony.
This time, Noor Ahmed, the Department of Economic Affairs of the Federal Secretary, thanked the G20 and Paris Club countries for their debt suspension support.
He said this is timely and has helped Pakistan save millions of lives and livelihoods during the difficult COVID-19 period.
You may remember that creditors of the Group of Twenty (G20) countries and the Paris Club have announced a debt repayment suspension plan (DSSI) to provide much-needed fiscal space for stressed countries to combat the COVID-19 problem.
Earlier this year, the Group of Twenty (G20) and the Paris Club agreed to forgive most of the debt payments of the world’s poorest countries in 2020 because the full virus blockade has turned the global economy for the better.
In June, Pakistan was appointed as one of the few countries to ensure the suspension of debt repayment from the Paris Club to mitigate the economic impact of the coronavirus crisis.
What’s more worrying is that Pakistan has also faced increasing doubts about the huge debt it has assumed through China-funded infrastructure projects in recent years.
Beijing has been steadily injecting cash into Pakistan. The investment as part of the China-Pakistan Economic Corridor has exceeded US$50 billion, which has upgraded the country’s infrastructure, power and transportation links.