Pakistan will only pay interest for two years to EXIM, according to Finance Minister Ishaq Dar
On Thursday, Ishaq Dar announced that the Export-Import Bank of China had rolled over $2.4 billion in loan payments.
“Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totaling US$ 2.4 billion which are due in next 2 fiscal years,” Ishaq Dar announced in a tweet.
Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totalling US$ 2.4 billion which are due in next 2 fiscal years:
— Ishaq Dar (@MIshaqDar50) July 27, 2023
FY2023-24: US$1.2 billion
FY2024-25: US$ 1.2 billion
Pakistan will make interest payments only in both years.
China has rolled over $2.4 billion in loans to Pakistan for two years, providing major relief to the Government. The loans, which were originally due to mature in December 2022, have now been extended until December 2024.
There will be $1.2 billion in rollovers for this year and $1.2 billion for next year, according to the Finance Minister Ishaq Dar.
Finance Minister said, “Pakistan will make interest payments only in both years,”
Over $2 billion of Pakistan’s publicly guaranteed debt has been rescheduled for a two-year period by China, providing a great deal of relief to the government as it rebuilds its foreign exchange reserves.
Pakistani officials have confirmed that the Economic Coordination Committee approved the revised terms of the agreement reached between Islamabad and Beijing.
China has provided new loans to Pakistan and rolled over its existing debt time and again to help the country meet its debt obligations. In June, China prematurely refinanced its $1.3 billion commercial loans. This prevented Pakistan from defaulting on its international debt obligations during the IMF program stalemate.
Pakistan’s gross official foreign exchange reserves have risen from $4.5 billion before the IMF deal to $8.7 billion following the signing of the IMF program.
