Pakistan optimistic as key allies agree to extend debt

WEB DESK: Pakistan has successfully secured commitments from China, Saudi Arabia, and the United Arab Emirates to rollover its debt for another year, offering a significant boost as the country awaits final approval for a new $7 billion loan programme from the International Monetary Fund (IMF), Bloomberg reported.

Finance Minister Muhammad Aurangzeb confirmed that the rollover amounts will mirror those from the previous year. This extension involves $12 billion in bilateral loans that have been ongoing for several years.

These agreements come at a crucial time for Pakistan, which is transitioning between IMF loan programmes to ensure it remains on track with its debt repayments. Additionally, Pakistan has sought debt relief from China concerning power plants developed under the Belt and Road Initiative.

The nation anticipates receiving final approval for the IMF loan programme by the end of this month.

According to Aurangzeb, Prime Minister Shehbaz Sharif’s administration is aiming to bridge a financing gap of up to $5 billion over the IMF’s three-year programme.

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