ISLAMABAD: China has agreed to reschedule $1.8 billion of Pakistan’s debt.
The agreement covers a two-year period, easing immediate repayment pressure.
This figure is roughly half of the amount Pakistan had initially requested.
The revised deal is vital for Pakistan to stay on track with its IMF program.
Pakistan faces over $8 billion in external debt maturities in FY25.
This does not include the $13 billion in bilateral loans that are typically rolled over.
IMF Programme Faces Crucial Test
The debt relief from China strengthens Pakistan’s fiscal stability efforts.
Delays in other rollovers could still endanger IMF compliance.
Pakistan’s economic managers are pushing hard to ensure all commitments are met.
The IMF closely monitors bilateral loan arrangements in its review process.
Officials say timely rescheduling signals global confidence in Pakistan’s reforms.
External Pressure Eased, But Not Eliminated
While this agreement offers short-term relief, more diplomacy is needed.
Pakistan must still manage large repayments through FY25 and FY26.
Experts caution that any disruption could derail the fragile economic recovery.
