Pakistan receives $370 million in debt relief from Japan
Tokyo and Islamabad agreed on debt deferral; amounting to Japanese yen 40 billion (approximately $370 million) for making fiscal space to fight against Covid-19 in Pakistan. Secondly, According to an official statement; this is in line with the G20; Debt Service Suspension Initiative (DSSI) decided on April 15, 2020; and the memorandum of understanding (MoU) signed on June 9, 2020; between Pakistan and creditor countries. Moreover, according to an official statement released by the Japanese embassy on Tuesday; this is in line with the G20; Debt Service Suspension Initiative (DSSI) negotiated on April 15, 2020; and the memorandum of understanding (MoU) signed between Pakistan and the creditor countries on June 9, 2020. Furthermore, “On April 27, 2021; Ambassador of Japan to Pakistan Matsuda Kuninori and Secretary of the Ministry of Economic Affairs Noor Ahmed signed and exchanged notes to this effect in Islamabad,” it said.
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#Pakistan shows appreciation for the suspension of $367 million in debt owed to #Japan. 🇯🇵🇵🇰
Pakistan and Japan signed debt suspension agreements worth $367 million under phase-1 of the G20 Debt Service Suspension Initiative (DSSI). pic.twitter.com/LBqoAuTwJR
— Developing Pakistan (@DevelopmentPk) May 15, 2021
Memorandum of understanding (MoU) between Japan and Pakistan
Moreover, From the early 1990s to the mid-2010s; concessional loans with debt deferral were used in Pakistan for infrastructure construction such as highways tunnels, power plants and grids, irrigation, water supply, and drainage facilities. In terms of low-interest rates, long grace periods, and repayment terms, these concessional loans are beneficial to Pakistan. In terms of low-interest rates long grace periods; and repayment terms, these concessional loans are beneficial to Pakistan. Secondly, “After Afghanistan achieves stability, I believe some of these projects must be a part of the connectivity between Pakistan, Afghanistan, and Central Asia;” the Japanese envoy said, according to the statement. In conclusion, Under this arrangement; Loan and interest repayments will be made in accordance; with the terms of the loan.
In conclusion, Repayments for debt and interest due between May 1, 2020; and December 31, 2020; will be rescheduled after June 15, 2022; under this arrangement. Thirdly, The Covid 19 is still affecting the world to its worst. To contain Covid-19, Japan offered $9.5 million in direct aid and $7.41 million in multilateral aid; as well as swift distribution of diagnostic kits. In conclusion, This agreement, which we signed today, reflects Japan’s economic solidarity with Pakistan,” Ambassador Matsuda said.
