Pakistan Secures Loan Repayment Extension from China, Saudi Arabia, and UAE, Paving Way for IMF Loan Approval

In a crucial development for the approval of Pakistan’s $7 billion loan program from the Executive Board of the International Monetary Fund (IMF), Pakistan has secured assurances from China, Saudi Arabia, and the United Arab Emirates (UAE) to extend the repayment period of bilateral loans.

According to the Finance Ministry, Pakistan is required to repay $12 billion in bilateral loans to these friendly countries within this year. However, the key demand of the IMF has now been met, as China, Saudi Arabia, and the UAE have agreed to a one-year extension of the loan period. Specifically, Pakistan owes $5 billion to Saudi Arabia, $4 billion to China, and $3 billion to the UAE.

The Finance Minister confirmed this development, stating that the extension will significantly ease Pakistan’s financial obligations and contribute to the stability of its economy. Pakistan is also committed to addressing 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 IMF Executive Board meeting, expected to take place at the end of this month, will finalize the approval of the $7 billion loan program for Pakistan. The program spans 37 months and aims to provide critical financial support to stabilize the country’s economy.

The Finance Minister expressed optimism regarding the forthcoming IMF Board meeting, highlighting that the assurances from China, Saudi Arabia, and the UAE have created a positive outlook for the approval of the loan program.

The extension of the loan repayment period and the anticipated approval of the IMF loan program are seen as vital steps in Pakistan’s efforts to navigate its financial challenges and achieve economic stability. The government remains focused on implementing necessary reforms and ensuring sustainable economic growth.