IMF chapter closed, Pakistan leans on China to prevent default, Financial Times
Pakistan has to repay debt of 3.7 billion dollars by June, Officials claim that $1.3 billion rescheduling and $1 billion loan from Chinese government will save Pakistan from immediate bankruptcy, British Journal: Even if they survive in June, they will default in July, Khaqaan Najeeb
After IMF chapter was closed, government of Pakistan relied on China to pay its foreign debts of 3.7 billion dollars to avoid default.
Pakistani officials claim that refinancing $1.3 billion in commercial loans and a billion dollar loan from Chinese government will save Pakistan from immediate bankruptcy, but economic analyst Khaqan Najeeb says that Pakistan can avoid bankruptcy in June with China’s help. In July, country will go bankrupt again.
British Journal Financial Times Pakistan hopes to roll over more than $2 billion in debt owed to China next month. Pakistan still faces more payment deadlines to avoid bankruptcy.
IMF’s main loan program is on hold, with Pakistan due to repay $3.7 billion in foreign loans in June and June. Two senior Pakistani officials say Beijing has pledged to help Pakistan with fresh debt immediately after making two major payments worth $2.3 billion due in June.
Pakistani officials say that the refinancing of $1.3 billion in commercial loans and a $1 billion loan from Chinese government will save Pakistan from immediate bankruptcy.
On the other hand, Khaqan Najeeb, financial adviser of former Tehreek-e-Insaf government, has claimed that even if Pakistan escaped bankruptcy in June with the help of China, it will go bankrupt again in July.
