US provides $128 million debt relief to Pakistan in 2020: Embassy

By: News Desk      Published: 12:24 PM, 17 Dec, 2020
US provides $128 million debt relief to Pakistan in 2020: Embassy

The United States on Thursday said they had provided a debt relief of $128 million to Pakistan in the current year and added that the two countries were working together to redirect resources to fight the coronavirus.

In a tweet, the US Embassy in Islamabad mentioned that the move came under the G20 Debt Service Suspension Initiative, noting that diverting the critical resources to the coronavirus pandemic was vital.

It was reported last month that Pakistan had so far secured $800 million worth of debt freeze deals from 14 members of the G-20 countries.

The Debt Service Suspension Initiative is aimed at helping the 73 eligible countries concentrate their resources on fighting the coronavirus pandemic and safeguarding the lives and livelihoods of millions of the most vulnerable people.

According to the World Bank, “Since it took effect on May 1, 2020, the initiative has delivered about $5 billion in relief to more than 40 eligible countries.”

It also says that the potential savings in terms of percentage of the 2019 GDP for Pakistan stood at 1.3 percent.