Pakistan requests China to rollover $2 billion loan. 

ISLAMABAD – Pakistan has formally requested China to extend the tenure of a $2 billion loan for an additional year, following a similar request made to the United Arab Emirates (UAE). Caretaker Prime Minister Anwaarul Haq Kakar has reportedly sent a letter to China’s Premier Li Keqiang addressing this matter.

The deadline for the repayment of the $2 billion loan is scheduled for March 23, 2024. Officials from Pakistan’s finance ministry are currently in communication with Chinese authorities regarding the potential extension.

In his letter, PM Kakar expressed gratitude to the Chinese government for their continued financial assistance to Pakistan, highlighting the support provided by the “all-weather friend” during challenging economic circumstances.

Earlier this month, the United Arab Emirates (UAE) agreed to extend the maturity of its $2 billion deposits held with the State Bank of Pakistan (SBP) for an additional year, offering relief to Pakistan amid its economic crisis. The official confirmation of this development was shared by the central bank on the social media platform X (formerly Twitter).

The central bank’s statement read, “UAE has confirmed rollover of its two deposits of US$1.0 billion each placed with State Bank of Pakistan for another one year which were maturing in January 2024.” In January 2023, the UAE had also consented to extending the existing debt of $2 billion for Pakistan and provided an additional $1 billion loan to bolster the country’s foreign exchange reserves.