Pakistan secures two-year loan deferral from China

• Finance Ministry sources say Pakistan will not have to pay additional interest on loan.
• The loan agreement has been extended from July 21, 2023, to June 30, 2025.
• The deferment was confirmed by China’s Exim Bank.

China has given the green light to Pakistan for a two-year deferment of a $2.1 billion loan.

The deferment was confirmed by China’s Exim Bank through a formal letter to Pakistan’s Finance Ministry.

Notably, Pakistan will not be required to pay any additional interest on the deferred loan.

The loan agreement has been extended from July 21, 2023, to June 30, 2025.

Prime Minister Shehbaz Sharif recently announced that the country’s foreign exchange reserves had risen by $600 million

During the launch of the Prime Minister’s Youth Sports Initiative in Islamabad, PM stated that Exim Bank of China is playing a crucial role in providing this rollover to Pakistan.