PARIS: The Paris Club of creditor countries said on Friday it was giving Pakistan another extension to service its debt so that it can dedicate its resources to combating the Covid-19 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 per cent 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 $11.5bn to the Paris Club, according to the IMF.

Published in Dawn, September 25th, 2021