China's Exim Bank rolls over $2.4 billion Pakistan loan
Pakistan's Finance Minister, Ishaq Dar, announced on Thursday that China's Export-Import (Exim) Bank has agreed to roll over 2.4 billion US dollar in loan payments for the next two years.
In a tweet, the minister stated, 'Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totaling 2.4 billion dollar which are due in the next 2 fiscal years.'
The rollover amount for this year stands at $1.2 billion, and an equal amount will be rolled over for the following year. Importantly, Pakistan will be required to make interest payments only during this period, providing some financial relief to the country.
This development comes after China's recent agreement to reschedule over $2 billion in publicly guaranteed debt of Pakistan for a period of two years. Such measures have significantly eased the burden on Pakistan's government, which has been actively working to rebuild foreign exchange reserves through fresh loans and extending the maturity of existing debt.
China has been a consistent supporter of Pakistan in meeting its debt obligations, frequently providing new loans and rolling over existing debt. In June, China proactively refinanced Pakistan's $1.3 billion commercial loans, a move that helped the country avoid default on its international debt obligations during a challenging period when the International Monetary Fund (IMF) program was stalled.
Following the signing of a new IMF program, Pakistan's gross official foreign exchange reserves have shown improvement, surging to $8.7 billion from the critically low level of $4.5 billion prior to the IMF deal. This financial support has been vital for stabilizing the country's economy and ensuring its ability to meet its financial commitments during these trying times.
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