In an important development for the approval of the $7 billion loan program from the Executive Board meeting of the International Monitory Fund (IMF), Pakistan has received assurances from China, Saudi Arabia and UAE to extend the loan repayment period.
Pakistan has to pay bilateral loans of 12 billion dollars to friendly countries in this year and now the key demand of IMF has been met as China, Saudi Arabia, and UAE have assured a one-year extension of the loan period.
Pakistan owes $5 billion to Saudi Arabia and $4 billion to China
Pakistan also has to return the $3 billion loan to the United Arab Emirates.
The Finance Minister confirmed the possible extension of the loan repayment period as Pakistan is also determined to fill the financing gap of 3 to 5 billion dollars in the next three years.
Pakistan has also requested loan relief from China for power plants.
IMF board meeting
The meeting of the Executive Board of the IMF is expected at the end of this month.
The IMF Board will give final approval to the 7 billion dollar loan program for Pakistan over 37 months
