According to sources on Friday, Pakistan has requested an extension for the $2 billion loan from China, as the deadline for the secure deposit is approaching on March 23rd.
According to reports, Caretaker Prime Minister Anwaar-ul-Haq Kakar has written a letter to the Chinese Prime Minister, formally asking for an extension of the $2 billion loan for a period of one year. The loan is set to expire on March 23. Pakistan has made this request to China, seeking the same terms and conditions for the loan rollover. Pakistan’s finance ministry is in communication with Chinese officials to ensure the loan extension is processed on time. Islamabad is optimistic about receiving loan rollover assistance from China.
In the letter written by Kakar, he expressed gratitude towards the Chinese government for their efforts in alleviating Pakistan’s foreign payment challenges. It should be mentioned that Pakistan obtained secure deposits amounting to $4 billion from China to tackle the balance of payments problem. In January, the United Arab Emirates (UAE) extended the repayment deadline for a $2 billion loan to Pakistan by one year.
This decision was made in response to Pakistan’s formal request to the UAE for a loan extension, as the loan was due to mature in January. Caretaker Prime Minister Anwaar-ul-Haq Kakar wrote a letter to UAE President Sheikh Mohammed bin Zayed al-Nahyan, asking for the loan to be rolled over.
