Yesterday, the Paris Club, a group of lenders to developing countries, announced deferment of loans to Pakistan. Earlier, the IMF had also asked Pakistan to defer repayment of loans by one year.
Now Saudi Arabia and China have also promised to defer repayment of Pakistan’s loans from May 1 to December 31. According to finance ministry officials, Saudi Arabia and China have promised to defer on loans from May 1 to December 31.
Delay in repayment of loans will provide a total relief of 1.8 billion to Pakistan. An official announcement will be made next week, while talks are underway with the United Arab Emirates to default on the loan. The next budget is being made with these payments as late.