Kopar Khairane
National

China will reschedule Pakistan’s USD 2 billion debt, which is cash-strapped

<p>China has agreed to postpone Pakistan’s over USD 2 billion debt for a period of two years, which would be a huge relief to the country’s cash-strapped administration, which is now working to replenish its foreign currency reserves by taking out new loans.</p>
<p>According to top Pakistani officials, the Economic Coordination Committee (ECC) of the Cabinet, presided over by Finance Minister Ishaq Dar on Thursday, endorsed the amended conditions of the deal negotiated between Islamabad and Beijing.</p>
<p>In Karachi, Pakistan has constructed two nuclear power stations with a combined 2,117 megawatts of output capacity. The plants cost USD 9.5 billion in total, which includes the USD 6.5 billion funding from China. The Export-Import (Exim) Bank of China provided the loan.<img decoding=”async” class=”alignnone wp-image-87202″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-reacting-to-gangulys-ind-pak-games-one-sided-remarks-pak-legend-says-nobodys-comments-really-matter-download-2023-07-21t175330.929.jpg” alt=”” width=”1580″ height=”1183″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-reacting-to-gangulys-ind-pak-games-one-sided-remarks-pak-legend-says-nobodys-comments-really-matter-download-2023-07-21t175330.929.jpg 259w, https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-reacting-to-gangulys-ind-pak-games-one-sided-remarks-pak-legend-says-nobodys-comments-really-matter-download-2023-07-21t175330.929-150×112.jpg 150w” sizes=”(max-width: 1580px) 100vw, 1580px” /></p>
<p>Of the USD 2 billion that will now be halted, more than USD 625 million was maturing. According to top authorities, the USD 6.5 billion loan is publicly guaranteed, and more than USD 2 billion in repayments were due in two years until China agreed to a delay.</p>
<p>The ECC’s ratification of the amended deal with China was not publicly acknowledged by the Ministry of Finance. China has often provided fresh loans and rolled over old debt to assist Pakistan in meeting its financial commitments.</p>
<p>When the International Monetary Fund program was blocked in June, China refinancing its USD 1.3 billion commercial loans early, saving Pakistan from defaulting on its international financial commitments.</p>
<p>Pakistan’s gross official foreign exchange reserves have increased to USD 8.7 billion after the signing of the new IMF programme, from a dangerously low level of USD 4.5 billion before the IMF agreement.</p>
<p>Prime Minister Shehbaz Sharif had earlier claimed that China has renewed loans totaling more than USD 5 billion.</p>

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