Pakistan likely to get $1bn in debt relief from G20

July 22, 2021

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Pakistan is hoping for a third deferment of Foreign debt from the G20 and is working to suspend payments worth more than $ 1 billion.

The country filed a $ 3.78 billion debt relief proposal with the G20 on Monday, which will be offered in three phases, according to local media reports.

Pakistan has already received a two-stage waiver, and in the first phase, from May to December 2020, more than $ 1.6 billion in debt payments were suspended.

The second refusal, worth more than $ 1.1 billion, was received in January-June 2021.

As per the reports, Pakistan is now awaiting a third Debt Relief between July and December 2021 with the aim of suspending the payment of $ 1.052bn on debt from the G20.

Earlier, in April 2020, the G20 countries provided significant assistance to Pakistan, postponing the payment of the $ 12 billion debt and agreeing on a period of up to 2.5 years for the payment of tranches and interest on loans.