China to rollover $2bn debt

January 31, 2024 (MLN): The caretaker Prime Minister, Anwar ul Haq Kakar, has formally submitted a request for China to roll over $2 billion in debt before its scheduled maturity on March 23, 2024, according to sources.

This development comes after Mr Jameel Ahmed, Governor of the State Bank of Pakistan (SBP) highlighted another $5bn rollover from friendly countries during the post-Monetary Policy Committee (MPC) Analyst Briefing on Monday.

It is crucial to note that the country's foreign exchange reserves witnessed a boost this month as the State Bank of Pakistan (SBP) received the second installment of SDR 528 million, equivalent to $705.6m from the International Monetary Fund (IMF).

Pakistan’s 9-month SBA aims to provide a policy anchor for addressing domestic and external balances and a framework for financial support from multilateral and bilateral partners.

Accordingly, this rollover would help reduce pressure on the building FX reserves of the country.

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