ISLAMABAD – In another boost to cash-strapped Pakistan’s foreign exchange reserves, the Exim Bank of China has rolled over $2.1 billion loan, it emerged on Wednesday.
Pakistan’s iron friend rolled over the massive loan that matured last week within the next two years, extending relief as Islamabad is facing an acute balance of payment crisis.
Media reports quoting sources familiar with the development said, the Exim Bank of China has notified the Pakistani government in a recent letter about the rollover.
In the grace period given by Beijing-based bank, interest payment would not be made to the EXIM Bank China, and repayment of the principal amount would be deferred for two years. Chinese bank expressed its willingness to defer the bank till June 2025.
Last month, the State Bank of Pakistan announced that Beijing rolled over $1 billion loan, providing much-needed relief to crisis hit country. China comes to Pakistan’s rescue as South Asian nation has billions in overseas debt.
China continued to help Islamabad meet crucial debt repayments by providing relief as the government relied on global lenders like IMF and friendly nations China to finance its budget deficit.
Pakistan’s Finance Minister confirms rollover of 2bn Chinese loan amid IMF uncertainty
