Pakistan requests China to extend $2 billion loan

ISLAMABAD: Pakistan requested that China extend a $2 billion loan for an additional year after the United Arab Emirates (UAE) granted the same concession. According to reports, China’s Premier Li Keqiang received a letter from caretaker Prime Minister Anwaar-ul-Haq Kakar on this.

The $2 billion loan’s deposit period is scheduled to end on March 23, 2024, and representatives of Pakistan’s finance ministry are in communication with Chinese authorities over the situation.

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In his letter, PM Kakar expressed gratitude to the Chinese authorities for providing Pakistan with financial support. He continued by saying that Pakistan received a loan from the all-weather ally when its economy was struggling.

In order to give the South Asian nation a respite from its economic turmoil, the United Arab Emirates (UAE) rolled over its $2 billion in deposits with State Bank of Pakistan (SBP) for an additional year earlier this month.

The central bank verified the development in a tweet published on the social networking site X, which was formerly known as Twitter.

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According to the official release, “UAE has confirmed rollover of its two US$1.0 billion deposits, each, placed with State Bank of Pakistan for another one year, which were maturing in January 2024.”

Pakistan’s $2 billion existing debt was agreed to be rolled over by the UAE in January 2023, and the government was also given an additional $1 billion loan to help fortify its foreign exchange reserves.