China has agreed to refinance nearly $2 billion in debt. According to Finance Minister Miftah Ismail, this would assist shore up our foreign exchange reserves.
According to Finance Minister Miftah Ismail, China has agreed to refinance $2.3 billion in debt, giving the country with significant financial relief.
“The terms and circumstances for refinancing of RMB 15 billion deposit by Chinese banks (about US$ 2.3 billion) have been negotiated,” Miftah Ismail tweeted on 2 jun 2022
Inflows are scheduled to begin shortly after normal approvals from both sides. “This will help to strengthen our foreign exchange reserves,”
The State Bank of Pakistan’s (SBP) foreign exchange reserves fell by $190 million to $10.308 billion in the week ending May 6, according to the central bank.
The disbursement of loans by multilateral creditors has essentially ceased due to the failure to reach an agreement with the International Monetary Fund (IMF), which has also placed the budgetary assistance loans on hold.
According to data issued earlier this month by the Ministry of Economic Affairs, Pakistan received only $248 million in foreign loans in April, including $100 million in oil on deferred payments from Saudi Arabia.
The World Bank contributed $63 million, while the Asian Development Bank (ADB) contributed only $18 million. According to the government, total disbursement by all multilateral lenders in April was $95 million.
Pakistan was unable to get a $1 billion loan tranche from the IMF, while the World Bank delayed approval of a $400 million policy loan, affecting the clearance of a comparable loan from the Asian Infrastructure Investment Bank (AIIB). The AIIB has linked its loan to World Bank fiscal support.
In March, then-finance minister Shaukat Tarin said that China had agreed to roll over $4.2 billion in debt due to mature this week.
According to ministry officials, Pakistan had made several requests to Beijing to roll over the debt, the most recent of which was made last week to the Chinese top leadership.