Pakistan to request G20 for extension in Debt Suspension

June 10, 2021

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A meeting of the Economic Coordination Committee (ECC) cabinet has mandated the Economic Affairs Division (EAD) to request the G20 countries to further extend the debt relief to Pakistan under the Debt Service Suspension Initiative (DSSI) initiative taken last year.

The ECC meeting, chaired by Finance Minister Shaukat Tarin, on Wednesday allowed the EAD to continue its formal request to use G20 debt relief for another term ranging July-December 2021.

The meeting also allowed for the signing of a memorandum of understanding with bilateral creditors to avail almost $ 1 billion.

In principle, the ECC agreed to a proposal to procure Covid-19 vaccine for $ 1.1 billion to achieve a vaccination target of a minimum of 45 million and a maximum of 65 million people by December 2021, and decided to explore the available means of securing vaccination funding.

ECC further approved an additional $ 70 million for the month of June 2021. Previously, ECC had approved $ 130 million for vaccine purchases in June 2021 alone, and following an increase in the NCOC vaccination target, requires an additional $ 50 million in addition to the previously approved amount.