Friday, May 24, 2024

G-20 debt relief initiative provides $526 million debt relief to Pakistan

Recently Pakistan has signed an agreement with three new members of the G-20 in order to provide the country in debt with $526 million rescheduling that is under the G-20 new debt relief initiative. This agreement was signed with the Switzerland, China and France.

Economic Affairs Ministry highlights that Pakistan has already a successfully negotiated term for the debt relief with the 19 creditors and it is in talks with two other countries like United Arab Emirate (UAE), and Saudi Arabia.

As per the agreement, Pakistan is allowed to make the delayed payments that worth $170 million, or $9 million, and $347 million to the countries that have signed this agreement like Switzerland, France, and China.

The payments were already due in 2020 as in from a period of May-December. Pakistan till now has received a debt relief of worth $950 million from the various creditors in G-20 and it is actively in talks like with a total of around 21 creditors for the total debt relief of $1.7 billion.

Pakistan has ranked among 76 poorest countries that are simply being provided the facility of the debt relief under G-20 debt relief initiative. The country is actively seeking to get the scheduled payments delayed by focusing more on the uplifting of its economy during the current pandemic. Saudi Arabia has also withdrawn the cash support of Pakistan recently and Pakistan has to take loans from the other country like China to repay the Saudi Arabia.

Mehjabeen Qasim
Mehjabeen Qasim
Business Journalist at Startup Pakistan

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