ISLAMABAD China has “agreed” to roll over a $2 billion loan to Pakistan, according to sources cited by ARY News, which is a big milestone.
Sources inside the ministry of finance claim that the $2 billion loan will be rolled over under the current terms prior to its maturity date.
Less than 2 percent interest will be charged on the $2 billion in Chinese debt that is being deposited, according to sources.
According to reports, the $2 billion debt’s maturity period will conclude on March 23, 2024, and an additional $2 billion will be rolled over for a year.
It is important to note that as of the end of November in FY2023–24, Pakistan’s overall debt load was at an astounding Rs 63,399 trillion.
Over Rs12.430 trillion more was borrowed by the nation during the PDM and caretaker government’s mandate.
With domestic loans totaling Rs40.956 trillion and foreign loans totaling Rs22.434 trillion, Pakistan’s total debt load increased to Rs63.390 trillion.
China postponed paying Pakistan’s $2 billion debt for two years, starting in July 2023. Regarding the delay in debt recovery, Pakistan received an official letter from China Eximbank.
Pakistan will return the debt in accordance with the terms of the deal with China and was also spared from paying extra interest on the loan. According to further sources, all 31 loan agreements were extended over the original date of July 21, 2023, to June 30, 2025.
