Pak-Japan Signs Debt Suspension Agreements Of $ 367 Million

Pak-Japan signs debt suspension agreements of $ 367 million

ISLAMABAD, (UrduPoint / Pakistan Point News - 27th Apr, 2021 ) :Pakistan and Japan on Tuesday signed debt suspension agreements amounting to $ 367 million under G-20 Debt Service Suspension Initiative.

According to a press release issued by Ministry of Economic Affairs here, Federal Secretary, Economic Affairs Division Noor Ahmed and Ambassador of Japan to Pakistan Kuninori Matsuda signed these agreements in Islamabad.

The signing ceremony was witnessed by senior officials of Japanese Embassy.

In the wake of COVID-19, the G20 countries, together with the Paris Club creditors, announced a Debt Service Suspension Initiative (DSSI) to provide much needed fiscal space to stressed countries in order to meet their urgent economic and health needs.

The Government of Pakistan, taking advantage of this initiative, entered into negotiations with 21 creditor countries for debt suspension amounting to $ 1.6 billion under DSSI Phase-I (AprilDecember, 2020).

The Government of Pakistan will repay the suspended amount in 4-years starting January, 2022.

On this occasion, Secretary, EAD reiterated his appreciation for the debt suspension provided by Japanese Government.

He highlighted that Japan is the 2nd largest bilateral lender to Pakistan.

He also thanked the Government of Japan for its generous support for fighting against COVID-19 pandemic.

He lauded that Japan's timely support helped Pakistan save lives and livelihoods of millions during the testing times.

He also acknowledged continued support of Japan for health, education, agriculture, infrastructure, disaster management and urban services including water supply, sanitation and waste management.

While speaking on the occasion, Ambassador Matsuda also reaffirmed Japanese support to Pakistan on issues of mutual interest.

Japanese economic assistance has played and shall continue to play a vital role in the socioeconomic uplift of Pakistan, he added.

Both sides reiterated strong commitment towards further expanding bilateral economic cooperation.