FM Ishaq Dar reveals "Plan B" as IMF prospects fade

Islamabad: Finance Minister Ishaq Dar announced Pakistan's alternative strategy, known as "Plan B," in response to fading hopes for continued IMF assistance.

Dar revealed plans to immediately reschedule the country's bilateral external debt, mainly owed to China, amounting to over $27 billion.

Multilateral agencies and Paris Club nations will not be involved in the debt restructuring discussions, as it is deemed undignified.

Limited support is expected from the IMF, with the ninth review likely marking the end of the program, leaving around $1.4 billion unrealized.

Saudi Arabia and the United Arab Emirates have committed to providing $3 billion in support, expected before June 30 or early next year if the deadline is missed.

Bilateral debt rescheduling will be addressed in the next fiscal year, without involving the IMF.

Rescheduling will focus on extended repayment terms rather than write-offs or haircuts.

There is little room for negotiation within the $10 billion Paris Club debt, which has been recently rescheduled under the G-20 Debt Service Suspension Initiative.

Around half of the remaining Chinese loans could be considered for extended repayment periods while maintaining the principal amount.