Pakistan requests China to rollover $6.3 billion loans

ISLAMABAD – Pakistan on Saturday asked China to roll over its $6.3 billion debts that are set to be matured after eight months as Finance Minister Ishaq Dar is exploring options to manage external financing requirements of $34 billion.

The flood-hit South Asia country has already secured one-year extension in a $3 billion deposit, which has been parked in the State Bank of Pakistan (SBP) by Saudi Arabia. It is now making efforts to get rollover from China to arrange the remaining $29 billion.  

Reports said that the Pakistani finance minister had discussed the issue of rollover and refinancing of nearly $6.3 billion commercial loans and the central bank debt in a meeting with Chinese Ambassador Nong Rong.

"The $3.3 billion Chinese commercial loans and the $3 billion worth SAFE deposits loans were maturing from now till June next year," the Express Tribune reported.

"The SAFE deposit is on the balance sheet of the central bank. In addition to this, over $900 million bilateral Chinese debt was becoming due during the current fiscal year."

The development comes as Prime Minister Shehbaz Sharif is scheduled to visit China next month.