Pakistan Seeks Debt Relief from Allies

 

Pakistan is facing a serious economic crisis and is seeking help from its close allies. The country has requested China, Saudi Arabia and the United Arab Emirates to restructure some of its debt.

Pakistan owes more than $27 billion to these three nations. Some of these debts need to be paid back this year. But Pakistan does not have enough money to pay all the installments. So it has asked these countries to delay the payments. Pakistan wants these debts to be paid back over 3 to 5 years instead of whole amount this year. This will provide big relief to Pakistan.

China is Pakistan's biggest creditor. Pakistan imports many energy and infrastructure projects from China. It owes $15 billion to China just for these energy projects. Pakistan has requested China to adjust the debt according to work on these projects. It also wants China to use local coal for projects instead of imported coal. This will also save Pakistan foreign exchange. 

Saudi Arabia and UAE are close allies of Pakistan. Pakistan has requested these countries to extend the maturity of $7 billion debts owed to them. It wants these debts to be paid in installments over 3 years rather than whole amount this year. Both countries have assured their support to Pakistan for debt restructuring.

The International Monetary Fund (IMF) has also agreed to give $7 billion loan to Pakistan. But it has put some conditions that Pakistan must fulfill before the loan. One important condition is that Pakistan should get confirmation from these ally countries about restructuring of debt. This debt relief will help stabilize Pakistan's economy and meet its commitment with IMF.