China rolls over $2.4 billion loan to Pakistan

ISLAMABAD: EXIM Bank of China has rolled over its loan of $2.4 billion with Pakistan for two years to strengthen Islamabad’s foreign reserves, ARY News reported. 

The announcement was made by Finance Minister Ishaq Dar on his Twitter handle.

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

Dar in his tweet said that Chinese EXIM Bank has rolled over the loan of US$ 2.4 billion for two years including US$1.2 billion due in FY2023-24 and US$1.2 billion in FY2024-25: US$ 1.2 billion.

Dar said Pakistan will make interest payments only in both years.

On Wednesday, sources claimed that China has deferred the $2 billion debt payment to Pakistan for two years.

China Eximbank officially wrote to Pakistan about the delay in the recovery of debt.

Sources said that the federal government has revised the terms and conditions for the debt rollover. Pakistan is also exempted from paying additional interest on the loan, sources added.