The federal cabinet approved the suspension of bilateral loan repayments worth $2.7 billion announced earlier by G-20 countries in April.
The cabinet reviewed a summary prior to announcing this decision. 16 out of 21 countries have already provided 27 loan agreements, valuing $800 million. According to the news report, the cabinet would approve loan agreements worth $1 billion, with the remaining five countries including, Saudi Arabia and Japan, in the coming few weeks.
Twenty-one countries suspended loan repayment of $1.8 billion for Pakistan for the period of May 1 to December 31, 2020, followed by the suspension of bilateral loan repayment of $900 million from January 1 to June 30, 2021, with the grace period of one year.
Altogether, Pakistan received a loan suspension of $2.7 billion from the G-20 initiative of suspending loan repayments for COVID-19 hit countries.
There are a total of 57 agreements between Pakistan and the 21 countries in concern. The Economic Affairs Division clubbed the loan agreements of special areas and sectors so that a standard loan agreement can be signed with each bilateral donor.