PM Kakar writes letter to China's envoy for debt rollover of $2 billion
Pakistan
Pakistan is seeking an extension of the loan payment period for one year
ISLAMABAD (Dunya News) - Caretaker Prime Minister Anwaarul Haq Kakar has formally requested China's envoy for a debt rollover of $2 billion in a letter.
Kakar is seeking an extension of the loan payment period for one year, with ongoing discussions between the Ministry of Finance and Chinese officials for the possible rollover.
Under the current terms and conditions, Pakistan is obligated to deposit the $2 billion loan by March 24, 2024.
In his letter, Kakar expressed gratitude to China for its financial assistance during the economic crisis. The move comes after Pakistan recently secured a safe deposit of a $4 billion loan, alleviating mounting pressure on external debt payments and stabilizing foreign exchange reserves.
Also read: China rolls over $2bn loan as Pakistan races to meet IMF demand for external financing
Sources reveal that the formal discussions between the Ministry of Finance and Chinese officials are progressing, indicating the possibility of a one-year rollover for the $2 billion loan.
