Pakistan has started efforts to reschedule loans from friendly countries to get a bailout package from the IMF.
Pakistan has secured over $27 billion in loans with friendly countries China, Saudi Arabia and the United Arab Emirates to secure a 37-month IMF bailout package and reduce foreign exchange outflows and consumer tariffs in the energy sector. And has started a re-profiling of liabilities.
These efforts were revealed by Finance Minister Muhammad Aurangzeb during a press conference on Sunday.
According to the finance minister, Pakistan has asked China, Saudi Arabia and the United Arab Emirates to roll over their annual loan portfolio of more than $12 billion for three to five years so that the economic bailout of $7 billion by next month will be released. The approval of the IMF Board can be obtained for the exit.
The finance minister further said that this is on top of Pakistan’s request from Beijing to convert imported coal-based projects to local coal and re-profile more than $15 billion in energy sector liabilities to ensure timely payments. Financial resources can be created in the midst of difficulties.
“IPPs are owned by 40 big families, the actual price of electricity is being charged Rs 30 but Rs 60”.
The Chinese side acknowledged Pakistan’s foreign exchange woes and helped in re-profiling new business ventures and energy sector payments, as well as playing its part in supporting Pakistan’s case on the IMF board. Wanted to be known as a major stakeholder.
Mohammad Aurangzeb further said that the process of debt and equity rescheduling had been initiated and would now go into working groups with relevant financial institutions and sponsors of Chinese projects for which Pakistan is hiring local Chinese consultants.
He was in touch with the Finance Ministers of China, Saudi Arabia and the United Arab Emirates to extend the debt rollover for three years and assured their support, giving Pakistan a very comfortable position in terms of external financing gap. will be taken to
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2024-07-29 15:35:06
