To increase Islamabad’s foreign exchange reserves, the EXIM Bank of China has extended its $2.4 billion loan to Pakistan for an additional two years.
China rolls over loan to Pakistan:Ishaq Dar, the finance minister, posted the statement on his Twitter account. Dar tweeted that the Chinese EXIM Bank had extended the US$ 2.4 billion loan for two years, with US$ 1.2 billion due in FY2023–2024 and US$ 1.2 billion due in FY2024–25.
Dar stated that Pakistan will just pay interest during both years.
According to information released on Wednesday, China has postponed Pakistan’s $2 billion loan payment for two years.
Pakistan received a formal letter from China Eximbank explaining the delay in debt recovery.
According to sources, the federal government has modified the requirements for the debt rollover. According to the sources, Pakistan is also excused from paying additional interest on the loan.