Monitoring Desk: Paris Club accepted Pakistan’s application and provided ” a time-bound suspension of debt service” until December 2020. This initiative will also contribute to help the Islamic Republic of Pakistan to improve debt transparency and debt management.
“The Paris Club recognized that the Islamic Republic of Pakistan is eligible to benefit from the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Islamic Republic of Pakistan a time-bound suspension of debt service due from 1st May to 31st December 2020.” Read Detail Press Release of Paris Club Here
The Government of the Islamic Republic of Pakistan is committed to devote the resources freed by this initiative to increase spending in order to mitigate the health, economic and social impact of the COVID19-crisis. The Government of the Islamic Republic of Pakistan is also committed to seek from all its other bilateral official creditors a debt service treatment that is in line with the agreed term sheet.
Paris Club creditors will continue to closely coordinate with other stakeholders in the implementation phase of this initiative, in particular when considering a possible extension of the suspension period.