A $1 billion commercial loan that China recently paid back has been refinanced.

China Gives $1 Billion to Pakistan: SBP

 

KARACHI: According to ARY News, the State Bank of Pakistan (SBP) announced on Friday that it had received $1 billion from China, adding significantly to its foreign exchange reserves.

 

In a brief message sent to journalists on Friday night, the central bank informed them that $1 billion had been received from China.

 

Hours earlier, Finance Minister Ishaq Dar told the Standing Committee on Finance and Revenue of the National Assembly (NA) that China would be refinancing Pakistan's $1 billion loan.

 

Dar said that China will repurchase the $1.30 billion it paid to settle a Chinese loan today or Monday, referring to the country's decreasing foreign reserves.

 

Ishaq Dar stated, "SBP will receive $1.30 billion from China today or Monday," adding that negotiations for a two-billion-dollar swap were also in progress with Beijing.

 

Pakistan's economy is in turmoil because of its financial woes and the delay in reaching an agreement with the International Monetary Fund (IMF) that would allow for the release of much-needed funding that is necessary to avoid default.

 

Due to political instability, Pakistan does not appear to be able to secure financing from outside sources anytime soon.

 

Since the end of January, the government and the international lender have been talking about getting the $1.1 billion loan that has been on hold since November. This loan is part of a $6.5 billion Extended Fund Facility (EFF) that was agreed upon in 2019.

 

In the meantime, in an interview with Bloomberg, Moody's Investor Service analyst stated that Pakistan is moving toward "default" and that the country will not be able to finish the current IMF loan program until June 30.

 

"Pakistan-IMF talks neither failed nor concluded" A day earlier, Finance Minister Ishaq Dar stated that the negotiation phase between Pakistan and the International Monetary Fund (IMF) had not ended.

 

In an interview with journalists, Ishaq Dar predicted that the ninth review of the IMF program would be finished this month. Our talks with the IMF are still going on, and they haven't ended yet. The payment regarding which Fitch expressed concerns has already been made by us.

 

The talks between Pakistan and the IMF have not failed, and payments will continue as planned until June 30. We are completely prepared to make payments on time until June 30.

 

Before engaging in negotiations with the IMF, the finance minister asserted that some individuals desire Pakistan to resemble Sri Lanka. Geopolitics are being used against Pakistan. The State Bank Act's amendments are intolerable. The State Bank Act has also been amended, but it is still incomplete.

 

Dar stated that State Bank is a Pakistani bank and does not belong to any international organization. Our priority is to make all payments on time, including bonds.

 

Ishaq Dar denied rumors that the federal government would not freeze Roshan Digital Accounts, gold, or lockers. He added that the adversaries of Pakistan are spreading dread among individuals by lying.

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