ISLAMABAD: Rejecting rumors about delay in Chinese loan rollover, Finance Minister Ishaq Dar confirmed that Beijing has rolled over its $ 2 billion loan to Pakistan for one year.

Speaking in Senate today on point raised by PPP leader Raza Rabbani, he rejected speculative report that appeared in foreign media that Pakistan is still awaiting rollover of Chinese loan.

Ishaq Dar said rollover was made on March 23. He said documentation vis-à-vis the roll-over also stands completed and it is no longer in pipeline.

He said currently Pakistan is having two types of safe deposits with China. One is between Central Bank of China and State Bank of Pakistan and Islamabad is also doing business with commercial banks of China including, Bank of China, ICBC and China Development Bank.

Islamabad is trying hard to get assurance of external financing from friendly countries to unlock stalled loan programme of International Monetary Fund (IMF).

Earlier it emerged that State Bank of Pakistan is likely to raise interest rate by 2 percent at upcoming meeting of Monetary Policy Committee as per IMF’s demand.

Earlier, Reuters reported that China is still working on request by Pakistan to roll over loan that matured last week, citing top finance ministry official.

“It is work in progress,” Reuters quoted official as saying, on condition of anonymity. “Formal documentation is underway” and formal announcement will be made, they had added.

But Dar said report was “Totally speculative”.

Published in The Daily National Courier, April, 01 2023

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