Pakistan is thankful for suspending Japan's debt of 367 million dollars

According to ARY News, a $367 million debt suspension deal has been concluded between Pakistan and Japan. The agreement will repay the Pakistani government in 4 years from January 2022 for the suspended amount. At times, the Administrator of the Economic Affairs Division (EAD) welcomed the suspension.

Japanese diplomat Matsuda has reaffirmed Japan's shared interest support for Pakistan. "Japanese economic aid has played, and remains, an important role in Pakistan's socio-economic revival," he said.

The G20 countries and Paris Club creditors launched a suspension initiative (DSSI, Debt Service Suspension Initiative) after COVID-19, which would provide strained countries with much-needed fiscal space to fulfill their immediate health and economic needs.

Though the G20 countries' Debt Service Suspension Initiative (DSSI) was being taken advantage of, the government of Pakistan has started to negotiate debt suspension with 21 creditors. As a result of the initiative, the G-20 presented Pakistan with debt relief for $526 million, enabling them to pay delayed sums to some of the G20 nations.

In the past, Pakistan also has had Chinese assistance in repaying Saudi debt.

In2020, Pakistan's government debt, according to the State Bank, reached Rs3.7 trillion and grew by 6%.