Finance Minister Ishaq Dar on Thursday said Chinese EXIM Bank has rolled over interest-based $2.4 billion loan to Pakistan, Bol News reported.

“Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totalling US$ 2.4 billion which are due in next 2 fiscal years: FY2023-24: US$1.2 billion and FY2024-25: US$ 1.2 billion,” Ishaq Dar tweeted.

He said Pakistan would make interest payments only in both years.

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.