China’s Exim Bank has rolled over a $2.4 billion loan to Pakistan for two years, Finance Minister Ishaq Dar said on Thursday as the country makes an effort to boost its economy amid tight International Monetary Fund conditions.
“Pakistan will make interest payments only in both years,” he tweeted.
The loans, which China rolled over, amount to $2.4 billion. They were due in the next two fiscal years.
The South Asian country’s economy, according to many, averted the risk of default after signing a last-minute deal with the International Monetary Fund. The lender approved a standby agreement worth $3 billion for nine months.
Last week, China agreed to reschedule over $2 billion publicly guaranteed debt of Pakistan for a period of two years. The inflow resulted in increase in the foreign exchange reserves.
Long-term political allies Saudi Arabia and the United Arab Emirates (UAE) have already announced $3 billion in support to boost Pakistan’s dwindling reserves.