FILE PHOTO: An employee counts U.S. dollar bills at a money exchange in central Cairo, Egypt, March 20, 2019. REUTERS/Mohamed Abd El Ghany
Talks between Pakistan and China for rolling over a $2 billion loan will conclude in two weeks, Governor State Bank of Pakistan Jameel Ahmed said in an analyst briefing on Monday.
He said negotiations for the rescheduling of $2 billion in external debt are expected to conclude within the next two weeks, while another recall of $4 billion loan will likely be completed by June 2024.
Highlighting the fiscal challenges ahead, the SBP governor emphasized the need to arrange $4.8 billion in external financing within the remaining three months of the fiscal year.
Providing an overview of Pakistan’s external financial liabilities for the fiscal year 2023-24, he said the total stands at $24.3 billion. This covers Pakistan’s current breadth of financial commitments and how much debt is maturing in the coming few months.
The governor said Pakistan has successfully repaid $13.5 billion of external debt so far in FY24 despite economic challenges.
The governor’s remarks come just a day after SBP’s Monetary Policy Committee (MPC) on Monday decided to keep the policy rate unchanged at 22 percent.