Pakistan meets another IMF condition

ISLAMABAD: Pakistan has fulfilled another condition set by the International Monetary Fund (IMF) by extending the maturity period for domestic and foreign debt repayments.

According to IMF requirements, a deadline has been set to implement the new average maturity period by 2028. Under the plan, the average maturity period for domestic debt will be extended from 3 years and 8 months to 4 years and 3 months, while for external debt, it will be increased to 6 years and 3 months.

Sources said the extension in average maturity periods will help reduce future financing needs. An implementation report will also be sent to the IMF mission before the next economic review.

On average, the implementation of maturity time will begin from this fiscal year, with an average maturity time for local loans 3.8 years and 6.1 years for foreign loans.

On the condition of the IMF, an average time -to -refix condition for 30 % local loan will be met, while according to the new policy, about 30 % of local loans will be at a fixed policy rate.

The share of the Shariah-compliant will be increased to 20 % in the next three years, while the volume of foreign loans will not be allowed to increase by 40 % of the total debt.