China has agreed to rollover debt for a year: Pakistani Finance Minister

Islamabad: Finance Minister Muhammad Aurangzeb has said that Pakistan had secured commitment from China to rollover debt for a year.

The minister said Saudi Arabia and the United Arab Emirates had also agreed to rollover debt for a year as Islamabad looks to secure its next bailout with the International Monetary Fund (IMF).

The amount of rollovers will be the same as last year, Aurangzeb told journalists here after a parliamentary committee meeting.

The development comes as Pakistan seeks re-profiling of debt from China as well ahead of the Executive Board meeting of the IMF.

Last month, Pakistan authorities and the IMF reached a staff level agreement for a US $7-billion, 37-month loan programme aimed at cementing stability and inclusive growth.

The IMF said the new Extended Fund Facility was subject to approval by its Executive Board and “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.”

This included rollovers or disbursements on loans from Pakistan’s long-time allies Saudi Arabia, the United Arab Emirates, and China.

The deal capped negotiations that started in May after Islamabad completed the previous short-term Stand-By Arrangement that helped stabilise the economy and avert a sovereign debt default.