Debt Rollover Boost for Pakistan as IMF Loan Approval Awaits
Pakistan has received commitments from China, Saudi Arabia, and the UAE to rollover debt for a year, providing a much-needed boost as it waits for final approval of a new $7 billion loan programme with the IMF, according to a Bloomberg report. Finance Minister Muhammad Aurangzeb confirmed that the volume of debt rollovers would match last year’s amount, with $12 billion in bilateral loans already extended.
The agreement for a 37-month loan programme with the IMF in July marks Pakistan’s continued reliance on IMF support to meet its external financing targets. Aurangzeb stated that the government anticipates managing a financing gap of up to $5 billion over the next three years. The IMF’s Extended Fund Facility program is pending approval from its executive board, contingent on timely financing assurances from Pakistan’s development partners.
With uncertainties looming, Pakistan remains hopeful for financial stability as it navigates through the challenging economic landscape.
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