Pakistan Plans to Extend Loan Repayment Period to Meet IMF Targets

The Pakistan government has devised a detailed plan to meet another International Monetary Fund (IMF) condition.

The strategy focuses on extending the repayment period for both domestic and external loans. Officials say the move will provide financial relief and improve debt management.

According to the plan, the average maturity period for domestic debt will increase from 3 years and 8 months to 52 months. For external debt, the period will extend from 6.1 years to 76 months. The IMF has set 2028 as the deadline for achieving these targets.

Officials believe extending debt maturity will help reduce financing pressure in the coming years. This will also improve Pakistan’s ability to manage budget requirements. The longer repayment timeline is expected to support financial stability.

Sources highlight that the plan is part of Pakistan’s broader economic reforms under the IMF programme. They added that meeting these targets will be critical for securing future funding and maintaining investor confidence.

Read More :Pakistan Receives Second IMF Loan Tranche of $1 Billion

Pakistan has received the second instalment of $1 billion from the International Monetary Fund (IMF) under the ongoing loan programme.

The funds were transferred to the State Bank of Pakistan (SBP) and will be reflected in the central bank’s foreign exchange reserves on May 16.