China’s EXIM Bank has rolled over $2.4bn loans, says Ishaq Dar
- Pakistan will only make interest payments in both years, the finance minister adds
China’s EXIM Bank has rolled over principal payments of loans worth $2.4 billion that will be due in the coming two fiscal years, announced Finance Minister Ishaq Dar on Thursday.
China’s “EXIM Bank has rolled over for 2 years principal amounts of following loans totalling $2.4 billion which are due in next 2 fiscal years i.e. FY2023-24: $1.2 billion; FY2024-25: $1.2 billion,” said Dar on Twitter.
“Pakistan will make interest payments only in both years,” he added.
Earlier this month, at the launch ceremony of the ‘Youth Sports Initiative’ in Islamabad, Prime Minister Shehbaz Sharif had also said that China’s Exim Bank has rolled over a $600-million loan.
“I was told not to use the name, but I really want to express my gratitude to our friend,” said PM Shehbaz back then. “Our reserves have increased after China’s Exim Bank rolled over the $600 million loan yesterday.
“We want to increase our reserves – not through loans, but our own hard work and sacrifice.”
Pakistan’s foreign exchange reserves were given a boost after the International Monetary Fund (IMF) reached a staff-level agreement with Islamabad on policies to be supported by the nine-month Stand-By Agreement (SBA).
Following the agreement, the Executive Board of the IMF on July 12 approved the $3-billion SBA for Pakistan, which immediately allowed the disbursement of about $1.2 billion.
The remaining amount will be phased over the programme’s duration, subject to two quarterly reviews, the IMF added. The two reviews will occur in November and February.
Pakistan also received inflows to the tune of $3 billion from friendly countries, including $2 billion from Saudi Arabia, and $1 billion from the United Arab Emirates (UAE).
The inflows gave a massive boost to the country’s low level of foreign exchange reserves.
Last week, as expected, foreign exchange reserves held by the State Bank of Pakistan (SBP) surged $4.2 billion, clocking in at nearly $8.73 billion as of July 14, data showed.
The reserves’ position on July 21 will be released by the SBP later today (Thursday).
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