Pakistan has notified the International Monetary Fund (IMF) of a potential increase in debt servicing costs.

The two main points of contention in the ongoing negotiations for the $710 million loan tranche are excessive interest payment costs and challenges in obtaining external debt as a result of unfavorable domestic and international economic conditions. Approximately one-third of the anticipated borrowings for this fiscal year are related to the difficulties in organizing the $6.5 billion debt. According to the sources, the $6.5 billion figure might drop to $5.5 billion if Chinese lenders promptly finance their loans that are due in May or June of the following year.



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