Pakistan and Korea sign debt suspension deal 2023

In accordance with the G-20 Debt Service Suspension Initiative (DSSI), the government signed a Debt Service Suspension Agreement with the Republic of Korea on Monday, postponing the repayment of loans totaling $19.911 million.

This amount, which was originally due between July and December 2021, will now be repaid in semi-annual installments over a period of six years (including a one-year grace period), according to a press release from the Economic Affairs Division (EAD).

Repayment will now take six years instead of July–December 2021.

Due to the support provided by Pakistan’s development partners, the G-20 DSSI has provided the fiscal space necessary to address the country’s essential health and economic requirements.

The total debt that will be suspended under the DSSI framework between May 2020 and December 2021 is $3,686 million.

Pakistan has already concluded and signed 104 agreements with 21 bilateral creditors totaling $3,633m for the deferral of its debt repayments under the G-20 DSSI.

The signature of the aforementioned contract brings the total to $3,653 million. Ongoing negotiations are taking place for the remaining agreements to be signed under the G-20 DSSI.