Significantly, China is expected to refinance Pakistan’s $6.3 billion debt after Islamabad formally requested Beijing during PM Sharif’s recent visit.
The revelation was made public following PM Shehbaz Sharif’s recent trip to China, during which he met with both the premier and president of that country.
According to the sources, China would take Pakistan’s debt rollover into consideration, and a decision is anticipated in the coming months. Pakistan is eager to extend its $6.3 billion loan from China until June 2023.
Earlier, at a meeting between the Chinese ambassador to Pakistan, Nong Rong, and the finance minister, Ishaq Dar, the issue of rolling over and refinancing nearly $6.3 billion in commercial loans as well as the central bank debt was also covered.
While Saudi Arabia has also announced to refinance $3 billion of debt due in December of this year, Pakistan has already received $2.2 billion in loans during the quarter of July to September.
The deposit was supposed to mature on December 5, however the State Bank of Pakistan announced on Twitter that it has been postponed until 2019.
It is important to note that the deposit agreement was struck in November of last year between Riyadh and Islamabad. The Saudi Fund for Development (SFD) made a $3 billion deposit with SBP in accordance with this deposit arrangement.