According to sources, Pakistan has formally approached China to extend the term of a $2 billion loan, as the existing agreement is set to expire on March 23.
Caretaker Prime Minister Anwaar-ul-Haq Kakar has penned a letter to his Chinese counterpart, urging for a one-year rollover of the loan under the same terms and conditions. The finance ministry of Pakistan is actively engaged in discussions with Chinese officials to ensure a timely and favorable extension.
The letter from Kakar also expressed gratitude for the supportive measures taken by the Chinese government to alleviate Pakistan’s foreign payment burdens. Notably, Pakistan had initially secured safe deposits amounting to $4 billion from China to address the balance of payments challenges.
In a similar move, on January 17, the United Arab Emirates (UAE) granted a one-year extension for a $2 billion loan to Pakistan, responding to Islamabad’s request as the loan was nearing maturity in January.
Caretaker Prime Minister Anwaar-ul-Haq Kakar communicated with UAE President Sheikh Mohammed bin Zayed al-Nahyan, seeking the rollover of the loan.
Pakistan remains optimistic about securing the rollover facility from both China and the UAE, demonstrating the country’s diplomatic efforts to manage its financial obligations and strengthen economic stability. These financial arrangements play a crucial role in addressing balance of payments issues and supporting Pakistan’s economic trajectory.