October 23, 2022
1 min read

Pakistan seeks $6.3b China debt rollover

The $3.3 billion Chinese commercial loans and three $3 billion worth SAFE deposits loans were maturing from now till June next year

Pakistan has requested China to rollover its $6.3 billion debt that is maturing in next eight months as part of its overall plan to arrange $34 billion in the current fiscal year to meet its debt and external trade-related obligations, local media reported.

Another proposal was also under consideration to seek a fresh Chinese loan to repay the maturing bilateral debt during the fiscal year 2022-23, ending on June 30, The Express Tribune reported.

The issue of rollover and refinancing of nearly $6.3 billion commercial loans and the central bank debt was discussed in a meeting between Chinese Ambassador to Pakistan Nong Rong and Finance Minister Mohammad Ishaq Dar.

The $3.3 billion Chinese commercial loans and three $3 billion worth SAFE deposits loans were maturing from now till June next year, according to the Ministry of Finance officials, The Express Tribune reported.

The SAFE deposit is on the balance sheet of the central bank. In addition to this, over $900 million bilateral Chinese debt was becoming due during the current fiscal year.

For the current fiscal year, the International Monetary Fund and the Ministry of Finance have estimated Pakistan’s gross external financing requirements in the range of $32 billion to $34 billion, excluding the impact of the recent devastating floods.

Pakistan has already obtained $2.2 billion in loans during the July-September quarter while Saudi Arabia has also announced to roll over $3 billion debt maturing in December this year. The country still needs to arrange $29 billion and it is looking for minimum $6.3 billion to $7.2 billion rollovers from China in addition to any fresh lending.

Previous Story

Xi secures third term as China’s leader

Next Story

Saudi Crown to visit Delhi in Nov

Latest from Arab News

GCC condemns Israeli airstrikes in Syria

GCC SG Jasem Mohamed Albudaiwi affirmed that these airstrikes represent a continuation of efforts by the Israeli occupation forces to undermine and destabilise regional and international security Secretary General of the Gulf

Trump due in Saudi, UAE amid new tariffs

The GCC bloc, which includes the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain, has been hit with a 10% tariff, placing them among the lower-tiered rates US President Donald Trump has

Cleveland Clinic, G42 revolutionise healthcare with AI

The collaboration aims to enhance patient care, drive medical innovation, and optimise healthcare operations through AI-powered solutions In a groundbreaking partnership, Cleveland Clinic and Abu Dhabi-based artificial intelligence (AI) leader G42 have

UAE, Egypt Renew Ties

The two leaders exchanged greetings and best wishes for the remainder of the holy month of Ramadan and engaged in cordial conversation reflecting the strength of the close ties between their two

UAE tops UK, US in happiness index 

The UAE remains the happiest country in the Gulf, being the only nation in the region to feature in the top 25. Kuwait ranked 30th, Saudi Arabia 32nd, Oman 52nd, and Bahrain
Go toTop