Pakistan is expected to get another $1 billion relief in loans this year from the G20, reported the Express Tribune
Pakistan is expected to get another $1 billion relief in loans this year from the G20, reported the Express Tribune. Pakistan’s Economic Affairs Ministry said the relief would be covered under the third phase of the G20’s Debt Service Suspension Initiative.
So far, Pakistan has got $3.5 billion in temporary relief in debt, and around one -third of which came from China. The pending $1 billion later this year would include $785 million worth of pause on principal loan repayments.
A staff report by the International Monetary Fund (IMF) has put the relief amount under two-phase at around 2.5 billion.
“Pakistan would likely to get debt suspension of about $900 million to $1 billion from bilateral creditors under DSSI Phase-III,” the Economic Ministry said in one of its reports. Countries need to make a formal request to avail the offer. The government of Pakistan would take a decision in due course after due deliberation, it says.
The repayments of the principal, as well as the interest amounts, have been paused for three to four years. Once the repayments begin, these will add to the maturing loans and hence enhance the borrowing requirements in the future.