Chinese loan rollover
ISLAMABAD: 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 47K level this morning.
This positive development boosted the trading sentiment in the market and investors took new positions.
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 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.
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 the loan repayment agreement from July 21, 2023, to June 30, 2025.
