Pakistan Likely to Get $12 Billion Loan Rollover From China, KSA, UAE Soon

Pakistan is likely to get $12 billion in debt rolled over from China, Saudi Arabia and UAE soon, Finance Ministry sources told ProPakistani. Sources said China has demanded a higher interest rate on its outstanding dues and a solid schedule to clear payments to Chinese Independent Power Producers (IPPs) if Pakistan wants the debt rollover. If not less, China wants a further interest rate hike of up to 2 percent. Pakistani authorities are requesting friendly countries and bilateral partners to refrain from demanding an increase in their interest payments. Notably, the Abu Dhabi Fund for Development (UAE) has so far deposited $3 billion in the State Bank of Pakistan. On the $2 billion out of the total $3 billion, Pakistan has to pay 3 percent interest for $1 billion and 6.5 percent for the other billion. The International Monetary Fund (IMF) will also be consulted regarding the debt rollover for the current fiscal year. Sources added that the Prime Minister’s Office and the Finance Ministry are expected to finalize the extension of the loan maturity period to three to five years soon.