In order to handle its $34 billion in external funding needs, Pakistan asked China on Saturday to extend its $6.3 billion in debts that are due to maturity in eight months. Finance Minister Ishaq Dar is looking into possible solutions.
The $3 billion deposit, which Saudi Arabia had been holding at the State Bank of Pakistan (SBP), has already been extended by one year for the South Asian nation affected by floods. In order to arrange the remaining $29 billion, it is currently attempting to obtain a rollover from China.
According to reports, the Pakistani finance minister met with the Chinese ambassador Nong Rong to address the central bank debt as well as the rollover and refinancing of about $6.3 billion in commercial loans. “The $3.3 billion Chinese commercial loans and the $3 billion worth SAFE deposits loans were maturing from now till June next year,”.
“The $3.3 billion Chinese commercial loans and the $3 billion worth SAFE deposits loans were maturing from now till June next year,”.
“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.” The development comes as Prime Minister Shehbaz Sharif is scheduled to visit China next month.
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