Pakistan is set to receive
ISLAMABAD: 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 State Bank of Pakistan will further strengthen.
At present, the SBP’s reserves stand at $8.73 billion, from $4.3 billion before the approval of IMF loan on June 13.
A file photo of the foreign currencies as Pakistan is set to receive another $600 million from China.
According to sources, China’s Exim Bank approved an extension of Pakistan’s $2.1 billion loan from July 21, 2023, to June 30, 2025.
Furthermore, the Exim Bank has informed Pakistan that it will not impose any additional markup on this extension.
Notably, the Exim Bank already rolled over Pakistan’s $600 million loan on July 18. It contributed to the increase in the country’s Foreign Exchange Reserves of the central bank.
Exim Bank of China rolls-over $2.1 billion loans for two years
Meanwhile, the Exim Bank of China today deferred repayment of $2.1 billion loans by Pakistan for two years. Pakistan was supposed to repay this loan in coming weeks.
However, on the request of the government of Pakistan, the Exim Bank of China deferred loan repayment.
Pakistan will not pay any additional interest on this deferred loan, Exim Bank added. The Exim Bank has extended loan repayment agreement from July 21, 2023, to June 30, 2025.
Last week, Prime Minister Shehbaz Sharif announced that the country’s foreign exchange reserves had increased by an additional $600 million.
He stated this during the launch of the Prime Minister’s Youth Sports Initiative in Islamabad. He lauded the role of the Exim Bank of China for providing this rollover facility to Pakistan.
