BEIJING, Apr 19: Just over a month after China rolled-over a $2 billion loan to Islamabad, Pakistan’s Finance Minister Muhammad Aurangzeb is expected to meet with his Chinese counterpart Lan Fo’an to discuss the rescheduling of Beijing’s debt guarantee to Islamabad.
The two are expected to meet on the sidelines of the upcoming International Monetary Fund’s (IMF) spring meetings in Washington next week.
In addition, the Pakistan Finance Minister is also likely to meet the Managing Director of the IMF and an Assistant Secretary of the US Treasury, according to The Express Tribune.
Aurangzeb is scheduled to meet with senior officials from the World Bank, the IMF, global credit rating agencies, and commercial and investment banks, aimed at securing further cooperation from international financial institutions to help Islamabad strengthen its debilitating economy.
Additionally, Pakistan will push for an agreement on annual tax revenue targets and development budgets with the IMF, whose mission will arrive in Pakistan on May 14.
The Pakistan Finance Minister will meet China’s Finance Minister Lan Fo’an to discuss Pakistan’s request to reschedule $3.4 billion in debt, a move intended to ease Pakistan’s foreign financing gap.
This request follows prior efforts by Deputy Prime Minister Ishaq Dar during his visit to Beijing in February this year, which have yet to be resolved.
Islamabad had asked the Export-Import (Exim) Bank of China to rearrange its loans, with Muhammed Aurangzeb having also written to the Exim Bank in September last year, requesting the rescheduling.
The development comes on the heels of a $1.3 billion repayment of Chinese commercial debt, including $300 million paid this week. Pakistan is in talks with the Chinese bank for refinancing the loan. However, there is also a view within the government that Pakistan should not seek a renewal of this loan following an unexpected $1 billion boost from remittances in March, which totalled $4.1 billion.
Apart from his meeting with Lan Fo’an, Aurangzeb is also scheduled to meet with the Finance Minister of Saudi Arabia, Mohammed Aljadaan.
In deep financial doldrums, Islamabad secured a $7 billion Extended Fund Facility (EFF) from the IMF last year to help claw its way out of an economic crisis.
Pakistan is heavily dependent on Beijing for remaining afloat, with China constantly rolling over the $4 billion cash deposits, $6.5 billion worth commercial loans and $4.3 billion trade financing facility.
(UNI)
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