Dar says bank has rolled over amount for two years, which are due in the next two fiscal years    

Representational image of dollars. — AFP

ISLAMABAD: Minister for Finance Ishaq Dar said on Thursday that China had rolled over $2.4 billion in debt for the next two years. In a tweet, Minister for Finance Ishaq Dar said that Chinese EXIM Bank has rolled over for two years principal amounts of the following loans totalling $2.4 billion which are due in the next two fiscal years: FY2023-24: US$1.2 billion and FY2024-25: US$ 1.2 billion.

Pakistan will make interest payments only in both years, he added. Top official sources told The News in background discussions that China had provided a bilateral loan for the construction of Karachi Nuclear Power Projects (KANNUP) and its debt repayment would have started from the current fiscal year.

Now the Chinese EXIM Bank agreed to extend the grace period for two years, so its repayments would be started in the coming financial years. “Through these arrangements, China has provided a lot more breathing space to Pakistan,” said the official sources.

China had also granted a $1 billion rollover on account of SAFE deposits due in July 2023. Although Minister for Finance Ishaq Dar has not announced it publicly but tweets from the Minister of Finance confirmed that this $1 billion SAFE deposit from China provided more breathing space to the struggling economy. Meanwhile, Pakistan’s foreign exchange reserves held by the State Bank of Pakistan decreased by $541 million and stood at $8.18 billion during the week ending on July 21, 2023, following debt repayments.