Finance Minister Ishaq Dar just revealed that China’s Exim Bank has graciously extended the loan repayments of $2.4 billion over the next 2 years.
“Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totaling US$ 2.4 billion which are due in next 2 fiscal years,” he tweeted.
“Pakistan will make interest payments only in both years,” he added.
Several days after the Economic Coordination Committee (ECC) meeting, the Federal cabinet has given its approval to extend the repayment period of Pakistan’s debt to China by an additional two years. The deal, which amounts to over $2 billion, was successfully renegotiated between the two countries.
China has played a significant role in assisting Pakistan, being the largest contributor with $23.87 billion in bilateral aid and $5.71 billion in commercial contributions.
As of the end of December 2022, Pakistan’s total external debt stock reached $100.52 billion, out of which $29.59 billion has been financed by China, as reported by the International Monetary Fund.
