China Rolls Over $2.4 Billion Loan to Pakistan: Ishaq Dar

Finance Minister Ishaq Dar in a tweet announced that the Export-Import (Exim) Bank of China has rolled over $2.4 billion in loan repayments due in the next two years.

“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,” he tweeted.

“Pakistan will make interest payments only in both years,” he added.

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:

FY2023-24: US$1.2 billion
FY2024-25: US$ 1.2 billion

Pakistan will make interest payments only in both years.

— Ishaq Dar (@MIshaqDar50) July 27, 2023

This comes a few days after the Federal cabinet’s Economic Coordination Committee (ECC) meeting last Thursday approved the revised parameters of the deal negotiated between Pakistan and China for repayment of debt of over $2 billion by two more years.

China is 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, according to latest data by the International Monetary Fund.