ISLAMABAD: Pakistan on Wednesday signed a debt service suspension agreement with the Japan International Cooperation Agency (JICA) for the deferment of payment of $172 million loans under the G-20 Debt Service Suspension Initiative (DSSI).

This amount, initially repayable between July and December 2021, will now be repaid over a period of six years, including a one-year grace period, in semi-annual instalments, said a press release issued by the Economic Affairs Ministry.

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Due to the support extended by the development partners of Pakistan, the G-20 DSSI has provided the fiscal space, which was necessary to deal with the urgent health and economic needs of Pakistan, it said.