Pakistan awaits China's decision on rollover of $2b loan
China is working on a request by Pakistan to roll over a 2 billion US dollar loan that matured previous week, a top finance ministry official told media.
The rollover is critical for the country as its foreign exchange reserves have dipped to just four weeks’ worth of imports at a time when it is locked in talks with the International Monetary Fund (IMF) to secure bailout funds.
A formal announcement will be made, the source added, but gave no further details. The loan matured on March 23.
As Pakistan struggles to avert a default on its obligations, the only help so far has come from longtime ally Beijing, through a refinancing of 1.8 billion dollar already credited to the State Bank of Pakistan.
The IMF funding is critical to unlock other external financing avenues, and the two have been negotiating since early February to resume 1.1 billion dollar in funding held since November, part of a 6.5 billion dollar bailout agreed in 2019.
One of the lender's last remaining conditions for the release of the tranche is securing an assurance on external financing to fund the country's balance of payments.
Meanwhile, the Pakistan government on Wednesday said to have achieved 'progress' in external financing from Saudi Arabia and the United Arab Emirates.
.png "Advertisement")
