China Rolls Over $600 Million Loan to Pakistan: PM Shehbaz

The Export-Import (Exim) Bank of China has refinanced over $600 million to the State Bank of Pakistan (SBP) which will further boost the dwindling reserves held by the central bank. China rolled over the matured debt on Monday, Prime Minister Shehbaz Sharif announced at an event in Islamabad earlier today. The Prime Minister stated that “Our foreign exchange reserves are increasing, but we aim to achieve this not through loans, but by generating our own income.” He expressed confidence in the potential of our youth to excel and lead the country forward in various fields such as sports, information technology, industries, and agriculture. He argued that it is achievable since our young have the potential to thrive and advance the country in sports, information technology, industries, and agriculture. This rollover was beside the $5 billion+ loans refinanced for Pakistan by China in the last three months, helping Pakistan avoid default as discussions to get the IMF bailout dragged on before last week’s surprise. This inflow, along with previous disbursements of $1.2 billion from the International Monetary Fund, $1 billion from the United Arab Emirates, and $2 billion from the Kingdom of Saudi Arabia, will raise the SBP foreign exchange reserves in excess of $9 billion. The new forex level is expected to be reflected in this week’s central bank market update.