China has consented to extend the deadline for repayment of Pakistan’s publicly guaranteed debt of over $2 billion by two more years.
This was endorsed by the Economic Coordination Committee (ECC) of the federal cabinet in a meeting on Thursday. With Finance Minister Ishaq Dar in the chair, the committee deliberated and later approved the revised parameters of the deal negotiated between Pakistan and China, reported Express Tribune.
The Export-Import (Exim) Bank of China some time ago agreed to help finance $9.5 billion for two nuclear power plants in Karachi. According to senior officials, the $6.5 billion is a publicly guaranteed debt, and over $2 billion in repayments are due in two years, which China has agreed to reschedule.
So far, the Ministry of Finance hasn’t issued an official statement regarding the ECC’s approval of the new deal with China.
The International Monetary Fund’s latest Country Report shows that among the bilateral and commercial creditors who’ve lent sizable loans to Pakistan to date, China is by far Pakistan’s biggest rescuer with $23.87 billion in bilateral and $5.71 billion commercial contributions.
Pakistan’s total external debt stock was recorded at $100.52 billion at end-December 2022, of which $29.59 billion has been financed by China.
A friend in need is a friend indeed. Long live Pak China friedship. Chunguo ren min hen hao