In a tweet, Finance Minister Ishaq Dar revealed that China’s Export-Import (Exim) Bank had extended the repayment of $2.4 billion in loans scheduled for the upcoming two years.
Pakistan Receives $2.4B Loan from China
“The Chinese EXIM Bank has extended the maturity date for the principal amounts of the following loans, amounting to US$ 2.4 billion, which are scheduled to be repaid within the next two fiscal years,” he posted on Twitter.
“Pakistan will make interest payments only in both years,” he added.
This occurs several days following the Federal cabinet’s Economic Coordination Committee (ECC) gathering last Thursday, endorsing the modified aspects of the agreement negotiated between Pakistan and China.
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The deal pertains to the extension of the debt repayment period of over $2 billion by an additional two years.
Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totalling US$ 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
China is Pakistan’s largest savior with $23.87 billion in bilateral and $5.71 billion commercial donations.
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At the conclusion of December 2022, the overall external debt of Pakistan stood at $100.52 billion, out of which China contributed $29.59 billion, as per the most recent data from the International Monetary Fund.