BBoth sides have tentatively planned to meet in Qatar for policy level discussions to revive the programme and extend its tenure and size to $8 billion.
The development comes amid a delay in finalisation of new loan deals with Saudi Arabia, China and the United Arab Emirates (UAE).
Pakistan is awaiting a rollover of $2.3 billion Chinese commercial loan. Another $1 billion Chinese deposit is maturing this and the next month.
China has now placed a condition for the renewal of its $2.3 billion loan, which Pakistan returned in March on the hope of getting it back in April but still remains undisbursed.
The sources said China wanted that its loans could not be used for any purpose and should only be treated as part of the reserves because of Pakistan’s weakening financial situation.
The government has requested that the loan money should at least be allowed to use for making payments against Chinese imports. The sources added that the decision was pending.
No dates for Prime Minister Shehbaz’s maiden visit to China have been announced but the possibility of visual contact between the heads of the two governments was being explored, said the sources.
It’s a bitty to see Pakistan dragged to take loan from IMF. IMF is never a solution rather it makes the economy and sensitive issues worsening!