US extends $132 million debt relief to flood-hit Pakistan

New Delhi: The United States on Friday rolled over an agreement to suspend service payments on $132 million of Pakistan’s debt, as the South Asian nation faced economic crisis due to devastating floods.

US Ambassador to Pakistan Donald Blome has signed the second bilateral agreement to extend the loan relief under the G20 debt service suspension initiative, the US Embassy said on Twitter.

“Ambassador Blome today signed the second U.S.-Pakistan bilateral agreement under the #G20 Debt Service Suspension Initiative, providing $132 million in U.S. debt relief to Pakistan. Our priority is to redirect critical resources in Pakistan,” US Embassy said.

According to a Reuters report, the rollover is related to the Paris club agreement in April 2020 to support 73 lower income countries during Covid, under which the United States provided relief on $128 million in debt to Pakistan.

Pakistan’s outgoing finance minister Miftah Ismail said last week that Islamabad was seeking debt relief from bilateral creditors in the wake of flooding.

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