Paris Club suspends debt payments from Pakistan

ISLAMABAD: In an effort to free the country’s resources to fight COVID-19, the Paris Club on Wednesday suspend debt service payments from Pakistan as part of a G20 debt relief deal,

In a declaration, the Paris Club, an informal group of state creditors coordinated by the French finance ministry, announced a freeze on debt payments from Pakistan during May to December 2020 period.

The debt relief is being provided to Pakistan so that the country can focus on dealing with the coronavirus pandemic, read the statement.

The Paris Club said that the latest agreements bring to 12 the number of countries to receive debt relief under the deal with a total of $1.1 billion in debt deferred as a result.

Earlier on April 17, Pakistan had received major debt relief from G20 countries amid coronavirus pandemic as the international forum had agreed to postpone loan payments for the developing nations.

The G20 countries had provided a major relief to Pakistan by postponing debt payment worth $12 billion in the current fiscal year and had approved the time period up to 2.5 years for the payments of loan instalments and interest, sources had said.