Chinese Govt
ISLAMABAD: Finance Minister Ishaq Dar announced that the Chinese government has extended a $2.4 billion loan to Islamabad for a two-year period. Dar said it will provide a significant boost to the country’s economy.
This move comes as Pakistan aims to strengthen its foreign reserves following the successful agreement with the International Monetary Fund (IMF).
The Chinese Exim bank has rolled over principal amounts totaling $2.4 billion, said Dar. He further said that Pakistan was supposed to repay this loan in the next two fiscal years.
As a result, Pakistan will only make interest payments to Chinese govt during the next two financial years.
Notably, Pakistan had already received a $5 billion in loans from its longstanding ally, China, in the past three months.
These financial arrangements played a crucial role in preventing a default as Pakistan navigated through negotiations to secure the IMF bailout.
KSE-100 index crosses 47K level after China rolls over loans
The stock market today crossed the 47,000 points benchmark as the Chinese loan rollover of a $2.1 billion turned the market bullish.
The KSE-100 index of the Pakistan Stock Exchange settled at 47,163 points on Thursday morning, at 11:15 am.
On Wednesday, the Exim-Bank of China announced the rollover of a $2.1 billion loan that Pakistan was supposed to pay in the coming weeks.
Screenshot of the KSE-100 index, showing a gain of 480 points as its crosses the 47K level this morning.
The KSE-100 index gained 480 points till 11.15 am with trading of 82.722 million shares. The value of the traded shares amounted to 46.68 billion rupees.
When the market started trading, the KSE-100 index opened at 46,750 points, and within an hour, the index crossed 47K level.
Pakistan is set to receive another $600 million loan from China
Meanwhile, Pakistan is set to receive another $600 million from China in coming days. A consortium of two major Chinese banks is going to disburse $600 million to Pakistan in the coming days.
With the disbursement of this loan, the foreign exchange reserves of the SBP’s will further strengthen. At present, the SBP’s reserves stand at $8.73 billion.
China’s Exim Bank approved an extension of Pakistan’s $2.1 billion loan from July 21, 2023, to June 30, 2025.
