China will roll over $2.4 billion in debt next month, Fitch official says. Photo: File
New York: Bloomberg has said that by the end of June 30 this year, Pakistan will have to pay another 3 billion 700 million dollars in external debt.
Throughout the fiscal year, Pakistan struggled to avoid bankruptcy with the help of friendly countries and multilateral lending institutions, but the next fiscal year is also set to begin with a dire need for dollars.
An official of Fitch Ratings said that China will roll over a debt of 2.4 billion dollars next month. Pakistan has to pay 700 million dollars in May and 3 billion dollars in June, despite the support of Saudi Arabia and the United Arab Emirates. The MF remained unsatisfied and a staff-level agreement for $1.10 billion could not be reached. MF is inactive.
Also read: It was revealed that Pakistan received loans 5 billion dollars less than the target
Independent economists believe that both default and external debt restructuring would be very harmful for the economy and Pakistan is trying to avoid both scenarios with China’s support.
A Pakistani official visited China apparently to support the economy while the visiting Chinese foreign minister is expected to announce some good news for the battered economy.
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