China extends $2.4bn loan to Pakistan

July 27, 2023 (MLN): China Exim Bank has approved extending Pakistan’s $2.4 billion loan for a time span of two years, Federal Minster for Finance and Revenue Muhammad Ishaq Dar tweeted.

The loans that have been rescheduled include $1.2bn for FY2023-24 and $1.2bn for FY2024-25.

Pakistan will only pay interest on these loans in both years.

Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totalling US$ 2.4 billion which are due in next 2 fiscal years:

FY2023-24: US$1.2 billion
FY2024-25: US$ 1.2 billion

Pakistan will make interest payments only in both years.

— Ishaq Dar (@MIshaqDar50) July 27, 2023

The funds will help Pakistan maintain its Foreign Exchange reserves, which stood at $14.07bn for the week ended July 14, according to the latest State Bank of Pakistan (SBP) data released.

It is worth noting that Exim Bank rolled over Pakistan’s $600 million loan on July 18 which helped increase the country’s Foreign Exchange Reserves.

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