Pakistan signed two Debt Service Suspension Agreements with the Saudi Fund for Development (SFD) amounting to $846 million under the G-20 Debt Service Suspension Initiative (DSSI) Framework.
This amount which was due to be paid during the testing period from May 2020 to December 2021 will now be repaid over a period of six years starting from 2022 in semi-annual installments.
Due to the support extended by the Saudi Fund for Development, along with other bilateral creditor countries, the G-20 DSSI has provided the fiscal space which was necessary to deal with the urgent health and socioeconomic needs of the country.
The total amount of debt that has been suspended and rescheduled under the DSSI framework, covering the period from May 2020 to December 2021, is $3,688 million.
Pakistan has already concluded and signed 80 agreements with 21 bilateral creditors for the rescheduling of its debts under the G-20 DSSI framework, amounting to rescheduling of $2,088 million.
The signing of agreements with the Saudi Fund for Development brings the total rescheduled amount to $2,934 million while negotiations for the remaining $754 million are under way.
Agreements for the said amount are expected to be signed with respective bilateral development partners within the current fiscal year.
