ISLAMABAD, JULY 31: 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, China wants a further interest rate hike of up to 2 percent.
Bloom Pakistan was informed by sources in the Finance Ministry that Pakistan is likely to get $12 billion in debt rolled over from China, Saudi Arabia, and the United Arab Emirates soon.
The government of Pakistan is asking allies and bilateral allies to desist from pressuring them to pay more interest. Notably, the State Bank of Pakistan has received $3 billion in deposits from the Abu Dhabi Fund for Development (UAE) thus far. Pakistan must pay 3 percent interest on $1 billion and 6.5 percent interest on the remaining $2 billion of the $3 billion total.
Regarding the debt rollover for the current fiscal year, consultation with the International Monetary Fund (IMF) will also take place. The expansion of the loan maturity period to three to five years is anticipated to be finalized shortly, according to sources close to the Prime Minister’s Office and the Finance Ministry.
