ISLAMABAD: Pakistan and Germany signed a debt payment suspension agreement worth 26.213 million euros on Thursday as part of the Debt Service Suspension Initiative (DSSI).Germany signs 26.2m euro debt service suspension to Pakistan.
On behalf of their respective governments, the German development bank KfW and the Economic Affairs Division signed the agreement.
The signing of the agreement takes place in conjunction with Pakistan and Germany’s 60th anniversary of development partnership.
“The signing of the agreement coincides with the forthcoming celebrations for 60-year development cooperation between Pakistan and Germany.”https://t.co/7lk25h352j— Sabena Siddiqi (@sabena_siddiqi) October 29, 2021
Germany signs 26.2m euro debt service suspension to Pakistan
KfW works with Pakistan on a portfolio of more than 600 million euros in financial cooperation in the areas of energy, environment, governance, training, and job creation for long-term economic growth.
In June of last year, a memorandum of agreement on the Treatment of the Debt Service agreed in Paris in response to the Pakistan government’s request for a time-limited suspension of debt service in order to reduce the health, economic, and social effects of the Covid-19 problem.
Pakistan and Germany signed an agreement on Thursday for suspension of debt service of 26.213 million euro under the Debt Service Suspension Initiative. https://t.co/qwy67KnuKi— Economy of Pakistan 🇵🇰 (@EconomyPak) October 29, 2021
The signing of the DSSI will provide much-needed respite to the Pakistani government in its efforts to strengthen its economy in the wake of Covid-19’s severe financial conditions.
The German government, through KfW, granted Pakistan with a debt suspension facility of 52.766 million euros in the first phase of DSSI in September last year.
According to a press release from the German Embassy, the German government is also in the process of offering another debt suspension facility (DSSI Phase-3) to Pakistan, for which items are now discussed.