Federal Minister for Finance and Revenue Senator Ishaq Dar has confirmed that the Export-Import (Exim) Bank of China has rolled over $2.4 billion in loan repayments by Pakistan due in the next two years.
In a post uploaded Thursday on social media platform X, formerly known as Twitter, the finance minister said: “Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totalling US$ 2.4 billion which are due in next 2 fiscal years,” he tweeted.
FY2023-24: US$1.2 billion
FY2024-25: US$ 1.2 billion
“Pakistan will make interest payments only in both years,” Ishaq Dar added. added.
https://twitter.com/MIshaqDar50/status/1684429007985561600
Two days ago, the Economic Coordination Committee (ECC) of the Cabinet had approved the revised term about the grace period of all 31 loan agreements contracted with China EXIM Bank, are extended with 2 years from 21st July, 2023 to 30th June 2025.
An option of re-arrangement of scheduled payments of 32 loans, amounting to approximately $2.4 billion (principal amount), due between the period July 2023 and June 2025, was taken up with the EXIM Bank. The proposal contained extension of the maturity period tenure of each loan, contracted with EXIM Bank of China, by two years as grace period. During the grace period, interest payment would be made to the EXIM Bank, whereas repayment of principal amount would be deferred for two years.
The Bank, with, some minor amendments, expressed its willingness to agree to the proposal, and suggested that the grace period, interest, that the Government of Pakistan may take up the rearrangement of 31 loans (excluding one syndicate loan) formally, with the Government of People’s Republic of China.
China is Pakistan’s biggest rescuer with $23.87 billion in bilateral and $5.71 billion commercial contributions.
Pakistan’s total external debt stock was recorded at $100.52 billion at end-December 2022, of which $29.59 billion has been financed by China, according to latest data by the International Monetary Fund.