Pakistan has formally requested China to defer $3.4 billion in debt payments for two years as part of an effort to fulfill a crucial condition for the International Monetary Fund (IMF) loan program. Failure to secure this debt rescheduling before the upcoming IMF review talks in March 2025 could result in delays to the disbursement […] The post Pakistan Requests China to Reschedule Debt to Prevent Delays in $7 Billion IMF Program appeared first on Khaama Press.
Pakistan has formally requested China to defer $3.4 billion in debt repayments for two years to meet IMF conditions for a $7 billion loan program. Deputy Prime Minister Ishaq Dar made the request during his visit to China, emphasizing the need for rescheduling to avoid delays or cancellation of the IMF program. The IMF review, set for March 2025, requires Pakistan to secure financing and reschedule debt with China, Saudi Arabia, and the UAE. Pakistan faces a $5 billion financing gap, and its reliance on China raises concerns about a potential "debt-trap." This is Pakistan's second request in five months, highlighting ongoing economic challenges and its dependency on China for financial support.
