In an important step towards the approval of the $7 billion loan program at the International Monitoring Fund (IMF) Executive Board meeting, Pakistan received assurances from China, Saudi Arabia and the United Arab Emirates that they would extend the loan repayment period.
Pakistan has to pay $12 billion in bilateral loans to friendly countries this year and now a key IMF demand has been met as China, Saudi Arabia and the United Arab Emirates secured a one-year loan extension.
Pakistan owes $5 billion to Saudi Arabia and $4 billion to China
Pakistan must also return a $3 billion loan to the UAE.
The finance minister confirmed a possible extension of the loan repayment period as Pakistan is also committed to closing a funding gap of $3 billion to $5 billion over the next three years.
Pakistan has also asked China for loan waivers for power plants.
IMF board Meeting
A meeting of the IMF Executive Board is expected later this month.
The IMF Council will finally approve the 7 billion credit program for Pakistan for 37 months
