Paris Club extends Pakistan's debt payment deadline to December

The Paris Club of creditor countries has announced that it was extending the deadline for Pakistan to service its debt, so that the country can meet its resources to combat the COVID-19 pandemic.

Paris Club has given Pakistan an extension until December, to repay the debt, said the club in a statement on Friday and did not release any figure.

Islamabad "is committed to devoting the resources freed by this initiative to increase spending in order to mitigate the health, economic and social impact of the Covid-19 crisis," the statement said, reported Dawn.

Pakistan's debt amounts to about 90 per cent of its Gross Domestic Product (GDP), said the International Monetary Fund.

Its debt service for the 2021-2022 fiscal year totals USD 56.9 billion, the IMF says.

Pakistan has to repay USD 11.5 billion to the Paris Club, according to IMF.

The Paris Club is a group of major creditor countries with policies for extending coordinated debt relief to developing countries in addition to ensuring sustainable debt levels.

( With inputs from ANI )