This time a big update has come to the fore. According to the information received in this context, it has been learned that China has extended the repayment period of Pakistan’s (Pakistan-China) 2 billion dollar loan by 1 year. As a result, debt-ridden Pakistan got a great relief. In fact, Pakistan does not have the money to repay the loan installment.

For this reason, many big politicians and officials of Pakistan requested China to extend the loan repayment period. Then Pakistan’s friend China agreed to this. The Ministry of Finance of Pakistan has already confirmed this generosity of China.

China gave Pakistan relief (Pakistan-China):

The loan repayment period was March 24: According to the Ministry of Finance of Pakistan, this loan was originally supposed to be repaid by March 24. But China (Pakistan-China) has agreed to extend the deadline this time. Which has brought benefits to Pakistan. Meanwhile, the extension of the deadline comes at a time when Pakistan is facing economic challenges including pressure on its foreign exchange reserves. About 92 percent of Pakistan’s external debt comes from three main sources. These include multilateral and bilateral lenders and international bonds. Among bilateral lenders, China tops the list in terms of total external debt and liabilities.

Pakistan seeks more loans from IMF: Meanwhile, cash-strapped Pakistan (Pakistan-China) is seeking fresh loans from the International Monetary Fund (IMF). A team from the Washington-based lender is currently in Pakistan for talks. It is pertinent to mention that Islamabad secured a $7 billion Extended Fund Facility (EFF) last summer to overcome the economic crisis. The program has played a key role in stabilizing Pakistan’s economy and the government says the country is on the path to recovery on a long-term basis.

Pakistan Finance Minister Expresses Hope: Meanwhile, Pakistan’s Finance Minister Muhammad Aurangzeb said that Pakistan is “in a good position” for the first review of its $7 billion IMF bailout program. Pakistan was able to build some trust with the IMF by completing a short-term 9-month program last year. Previous loan programs in Pakistan were terminated prematurely or delayed due to the government’s failure to meet key conditions.

Pakistan is also talking to commercial banks: In addition, the government is in talks with commercial banks to reduce its growing energy sector debt for a loan of 1.25 trillion ($4.47 billion). Eliminating outstanding debt across the sector is a top priority under the current $7 billion bailout issued by the IMF. That has helped Pakistan (Pakistan-China) emerge from its financial crisis.