Pakistan is poised to secure a $12 billion debt rollover from China, Saudi Arabia, and the UAE soon, according to the Finance Ministry.
Sources revealed that China has set stringent conditions for the debt rollover, demanding a higher interest rate on its outstanding dues and a concrete schedule for payments to Chinese Independent Power Producers (IPPs).
China is pressing for an interest rate hike of up to 2 percent if not more.
Pakistani authorities are urging friendly countries and bilateral partners to avoid increasing their interest payments.
Notably, the Abu Dhabi Fund for Development (UAE) has already deposited $3 billion in the State Bank of Pakistan. Of this, $2 billion requires Pakistan to pay 3 percent interest on $1 billion and 6.5 percent on the other billion.
The International Monetary Fund (IMF) will also be consulted regarding the debt rollover for the current fiscal year.
Sources mentioned 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.
