In a significant development for the approval of the $7 billion loan program from the Executive Board of the International Monetary Fund (IMF), Pakistan has secured assurances from China, Saudi Arabia, and the UAE to extend the loan repayment period. Pakistan is obligated to repay bilateral loans amounting to $12 billion to friendly countries this year. The key demand of the IMF has now been met as China, Saudi Arabia, and the UAE have assured a one-year extension of the loan period.
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Specifically, Pakistan owes $5 billion to Saudi Arabia and $4 billion to China, along with a $3 billion loan to the United Arab Emirates. The Finance Minister confirmed the possible extension of the loan repayment period, as Pakistan is determined to bridge the financing gap of $3 to $5 billion over the next three years. Additionally, Pakistan has requested loan relief from China for power plants. The Executive Board meeting of the IMF is expected at the end of this month, where the IMF Board will give final approval to the $7 billion loan program for Pakistan over a period of 37 months.
