Paris Club extends Pakistan’s debt payment deadline

PARIS (AFP) – The Paris Club of creditor countries said it was giving Pakistan another extension to service its debt so that it can dedicate its resources to combatting the Covid pandemic.

The country has until December to make the payment, the club said in a statement, without releasing a figure.

Islamabad “is committed to devote 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.

The country s debt amounts to some 90 percent of its gross domestic product, according to the International Monetary Fund.

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

Pakistan owes $11.5 billion to the Paris Club, according to the IMF.