PM Shehbaz seeks debt reprofiling from China to secure IMF bailout
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Pakistan to give free visas to Chinese citizens from August 14
ISLAMABAD (Web Desk) - Prime Minister Shehbaz Sharif on Friday wrote a letter to China with a request of debt reprofiling for Pakistan to secure the IMF’s approval for a $7 billion economic bailout by next month.
According to reports, Pakistan had sought the reprofiling of more than $27 billion in debt and liabilities with friendly countries including China, Saudi Arabia and UAE to secure a 37-month IMF bailout package.
“I have written a letter to China, it’s a matter of public domain now, for [debt] reprofiling,” said the prime minister while chairing a cabinet meeting on Friday.
The World Bank defines the debt reprofiling as “modifications of the aggregate schedule of future country repayments through refinancing, debt substitution, or renegotiations.”
The process can help a country to mitigate the currency risk that often exacerbates debt sustainability issues.
The prime minister also lauded the friendly ties with China.
“Nobody was ready to invest in our energy sector at the time, but China stepped in and began CPEC, it was the only country to intervene,” said the prime minister, while commending the role of China in developing Pakistan’s infrastructure.
A day earlier, a 12-meber high-powered Chinese delegation also called on Prime Minister Shehbaz Sharif in Islamabad.
Also Read: Chinese delegation calls on PM Shehbaz
The Chinese delegation is on a visit to Pakistan for China’s cooperation in various fields in Pakistan. The delegation includes representatives of different ministries.
The PM said Pakistan and China had been in an eternal bond of friendship. He said the Chinese brothers’ security had been strengthened in Pakistan.
During the visit, the delegation presented their views about Chinese investment in Pakistan and cooperation about the second phase of CPEC. Sources said promotion of Pakistan’s exports were also discussed.
Meanwhile, Pakistan is all set to give free visas to Chinese citizens from August 14 to further cement the Sino-Pak relations.
“The Sino-Pak relations are higher than the Himalayas and deeper than the oceans,” said the prime minister while announcing the good news for both the countries.
China has proven to be a reliable ally of Pakistan for decades.
