China’s EXIM Bank Rolls Over $2.4bn Loan to Pakistan

China’s EXIM Bank Rolls Over $2.4bn Loan to Pakistan
The Export-Import Bank of China (EXIM) has sent $2.4 billion to Pakistan, which is a relief for the departing government led by the Pakistan Democratic Movement as it works to meet Pakistan's debt obligations that are due in 2024.

The bank has carried over the funds for two years, which are due in the following two fiscal years—$1.2 billion in FY24 and the same amount in FY25—according to a tweet from Finance Minister Ishaq Dar.

The finance minister, whose government's term will end in August, stated that Pakistan will merely pay interest in both years.

https://twitter.com/MIshaqDar50/status/1684429007985561600?s=20

The announcement that the same financial institution, Exim Bank of China, had rolled over $600 million to Pakistan was made by Prime Minister Shehbaz Sharif about a week prior.

The prime minister had stated that this sum was in addition to the more than $5 billion in loans that China, Pakistan's iron brother, has renewed during the previous three months.

Pakistan was able to escape a sovereign default and reach an agreement with the International Monetary Fund (IMF) thanks to financial assistance from friendly countries including China, Saudi Arabia, and the UAE.