China roles over principal amount of $2.4b loan for two years: Dar
Business
Pakistan will make interest payments only in both years: Finance Minister
LAHORE (Dunya News) - China rolled over a $2.4 billion loan to Pakistan maturing in the next two fiscal years, Pakistan’s finance minister said on Thursday.
"Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totalling US$ 2.4 billion which are due in next 2 fiscal years," Ishaq Dar tweeted.
He added that Pakistan will make interest payments only in both years.
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.
The country's foreign reserves have reached around $13.5 billion after a crucial financial assistance deal with the International Monetary Fund (IMF) late last month.
Of these $13.5 billion, some $8.16 billion are held by the country's central bank, while the remaining are with the commercial banks.
The country has received $1.2 billion of the total $3 billion IMF package while the remaining $1.8 billion would be released after two reviews in November this year and February 2024.
On June 30, Pakistan signed a nine-month IMF agreement under a standby arrangement for $3 billion, which was later approved by the IMF board.
The deal will help shore up country's depleting foreign reserves and contain a mounting balance of payment crisis.
The country is again on the move towards development, said the finance minister who stressed that everyone will have to continue to contribute in the journey towards progress.
