Fin Min expects IMF board to approve staff-level agreement by late August,
Pakistan’s Finance Minister, Muhammad Aurangzeb, is scheduled to visit China to discuss the rescheduling of a $15 billion loan from Beijing
Islamabad(Business Reporter); Pakistan Seeks Rescheduling of $15 Billion Chinese Loan, As per details, a joint working group will be established between Pakistan and China to facilitate the loan rescheduling, sources added. Minister for Finance Senator Mohammad Aurangzeb has stated that discussions are ongoing with the International Monetary Fund (IMF) regarding the financing gap, and he expects the loan deal to be approved by late August.
The International Monetary Fund’s (IMF) executive board was expected to approve the staff-level agreement by the end of August, following the summer break,” the finance czar told Geo News.
This month, Pakistan and the IMF reached an agreement for the $7 billion loan programme spanning 37 months.
Tough measures such as raising taxes on agricultural incomes and lifting electricity prices have prompted concerns about poor and middle-class Pakistanis grappling with rising inflation and the prospect of higher taxes.
Additionally, discussions will address China’s energy circular debt, which currently amounts to Rs 480 billion.
Joint Working Group: A joint working group will be established between Pakistan and China to facilitate the loan rescheduling ¹ ².
Energy Circular Debt: Discussions will also address China’s energy circular debt, which currently amounts to Rs 480 billion ¹ ².
Panda Bond: The Finance Minister will engage in talks regarding the Panda Bond, with Pakistan aiming to secure a $250 million Panda Bond during this visit ¹ ².
Previous Loan Extension: Earlier this year, China rolled over a $2 billion loan to Pakistan, which was due in March and extended for one year ¹ ².
The Finance Minister will also engage in talks regarding the Panda Bond. Pakistan aims to secure a $250 million Panda Bond during this visit.
Earlier this year, China rolled over a $2 billion loan to Pakistan.
The $2 billion loan was due in March and was extended for one year. Beijing had communicated the decision to Islamabad, it added.
Latest IMF Agreement Improves Pakistan’s Funding Prospects: Moody’s
Pakistan’s cash-strapped economy is struggling to stabilise from a financial crisis and secured a $3 billion standby arrangement from the International Monetary Fund last summer.
Pakistan’s vulnerable external position means that securing financing from multilateral and bilateral partners will be one of the most urgent issues facing the next government, ratings agency Fitch said last week.
Comments are closed, but trackbacks and pingbacks are open.