In a major development, China will likely to rollover Pakistan’s $6.3 billion debt after Islamabad officially requested Beijing during the recent visit of PM Sharif.
The development was publicly disclosed after PM Shehbaz Sharif’s recent visit to China, during which he met with both the premier and president of that country.
According to the sources, China will take Pakistan’s debt rollover into consideration, and a decision is expected in the coming months. Pakistan is keen to extend its $6.3 billion loan from China until June 2023.
Earlier, at a meeting between the Chinese ambassador to Pakistan, Nong Rong, and the finance minister, Ishaq Dar, the issue of rolling over and refinancing nearly $6.3 billion in commercial loans as well as the central bank debt was also discussed.
While Saudi Arabia has also announced to refinance $3 billion of debt due in December of this year, Pakistan has already received $2.2 billion in loans during the quarter of July to September.
The deposit was to mature on Dec. 5, but that has now been extended to next year, the State Bank of Pakistan said on Twitter.
It is important to note that the deposit agreement was struck in November of last year between Riyadh and Islamabad. The Saudi Fund for Development (SFD) made a $3 billion deposit with SBP in accordance with this deposit arrangement.