- The Ministry of Finance confirms the extension of loans reimbursement in China.
- The loan was initially the reimbursement on March 24.
- Pakistan is currently facing economic challenges.
Islamabad: China has extended the Pakistani loan repayment period of $ 2 billion in one year, the finance ministry confirmed on Saturday.
According to the ministry, the loan was initially the reimbursement on March 24, but China agreed to extend the deadline, offering Pakistan a crucial financial relief.
This extension occurs while Pakistan faces economic challenges, including pressure on exchange reserves.
About 92% of Pakistan’s external debt is due by three major sources, including multilateral and bilateral creditors as well as through international bonds. Among the bilateral creditors, China is at the top while keeping the total of the debt and external liabilities.
Meanwhile, the country short of money is looking for a new lending bracket for the International Monetary Fund (IMF), with the Washington lender team currently in Pakistan for negotiations.
Islamabad obtained the extensive 7 billion dollar funds (EFF) last summer to help get out of an economic crisis.
The program played a key role in the stabilization of the Pakistan economy and that the government said that the country was underway for a long -term resumption.
Finance Minister Muhammad Aurangzeb said Reuters This Pakistan was “well positioned” for the first examination of its IMF rescue program of $ 7 billion.
Pakistan was able to establish some confidence with the IMF by finishing a short -term nine -month program last year. Pakistan -prior loan programs have ended prematurely or have seen delays after the governments of the time have weakened to meet key conditions.
In addition, the government is negotiating a loan of 1.5 billion of rupees ($ 4.47 billion) with commercial banks to reduce its domed debt in the energy sector, said the Minister of Electricity and the Banking Association.
Connecting unresolved debt to the sector is an absolute priority in the context of an in progress of $ 7 billion, which helped Pakistan get out of an economic crisis.
“The loan will be reimbursed over a period of 5 to 7 years,” said Minister of Power Awais Leghari ReutersAdding that the term leaves has not yet been signed.