Islamabad: Pakistan and Germany on Thursday signed a Memorandum of Understanding (MoU) for suspension of debt service of EUR 26.213 million under the Debt Service Suspension Initiative (DSSI), according to media reports.
As per the details, the agreement was signed between the Economic Affairs Division and KfW – a German development bank – on behalf of their governments. The agreement signing coincides with the upcoming celebration of 60-year cooperation between Germany and Pakistan.
It is pertinent to mention that KfW has a portfolio of more than EUR 600 million in financial cooperation with Pakistan in different sectors including governance, climate, and energy. It was mentioned that this agreement will provide further relief for the Pakistani government to strengthen its economy.
Previously, the Pakistan government requested a time-bound suspension of debt service in a bid to alleviate the economic, health, and social impact of the COVID-19 pandemic. In this regard, an MoU was signed on the Treatment of Debt Service in Paris in June last year. In September 2020, the German government provided a debt suspension facility via the first phase of DSSI, which totalled EUR 52.766 million.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
