The Export-Import Bank of China (EXIM) has extended a loan of more than $2.4 billion to Pakistan, a relief for Pakistan’s outgoing Democratic Movement-led government as it plans to meet Pakistan’s debt repayments next year. wants
In a tweet, Finance Minister Ishaq Dar said the bank has rolled over the amount for two years, due in the next two fiscal years — $1.2 billion in FY24 and the same in FY25. the amount.
Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totalling US$ 2.4 billion which are due in next 2 fiscal years:
— Ishaq Dar (@MIshaqDar50) July 27, 2023
FY2023-24: US$1.2 billion
FY2024-25: US$ 1.2 billion
Pakistan will make interest payments only in both years.
“Pakistan will only pay the interest in both the years,” said the finance minister, whose term in government ends in August.
The relief was announced by Prime Minister Shehbaz Sharif a week after the same financial institution – EXIM Bank of China – announced that it would provide over $600 million to Pakistan.
The Prime Minister had said that this amount was in addition to over $5 billion in loans that Pakistan’s iron ore brother China had repaid in the last three months.
Funds from friendly countries including China, Saudi Arabia and the United Arab Emirates have helped Pakistan avoid sovereign default and reach an agreement with the International Monetary Fund (IMF).
