Pakistan has formally requested China to extend the maturity of a $2 billion loan by another year, following a similar appeal to the United Arab Emirates (UAE). Caretaker Prime Minister Anwaarul Haq Kakar conveyed this request through a letter addressed to China’s Premier Li Keqiang. The $2 billion loan is scheduled to mature on March 23, 2024, and Pakistani finance ministry officials are currently engaging with Chinese authorities to discuss the matter.
In his letter, PM Kakar expressed gratitude to the Chinese government for their crucial financial assistance to Pakistan during challenging economic circumstances. He acknowledged China as an “all-weather friend” that provided vital loans when the country faced economic difficulties.
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Earlier this month, the UAE had already agreed to roll over its $2 billion deposits placed with the State Bank of Pakistan (SBP) for an additional year, offering some relief to Pakistan amid its economic crisis. The confirmation of this extension came through an official statement released by the central bank on the social media platform X (formerly Twitter).
The statement from the central bank read, “UAE has confirmed the rollover of its two deposits of US$1.0 billion each placed with the State Bank of Pakistan for another one year, which were maturing in January 2024.” Notably, in January 2023, the UAE had also agreed to extend the maturity of Pakistan’s existing debt of $2 billion and provided an additional $1 billion loan to bolster the country’s foreign exchange reserves.
