Dar confirms rolled over OF $2bn China loan, issue ‘no longer pending’

March,31(EA Report) — Finance Minister Ishaq Dar confirmed of a $2 billion loan from China by saying that has been rolled over and is “no longer pending”, denying reports that talks were still in progress.
“I want to confirm that the $2 billion deposit from China, which was due on 23 March, is no longer pending,” said Dar, while answering a query raised by Pakistan Peoples’ Party (PPP) Senator Raza Rabbani pertaining to China’s loan rollover at the Parliament.
“Moreover, the documentation (of this loan) for 2023-24 is also completed” he said, adding that it is “no longer in the pipeline.”
Earlier, Reuters had reported that China is still working on a request by Pakistan to roll over the loan that matured last week, citing a top finance ministry official. “It is a work in progress,” the official told Reuters in a text message on Wednesday, on condition of anonymity. “Formal documentation is underway” and a formal announcement will be made, the report quoted him as saying.
But Dar said the Reuters report was “totally speculative”.
The rollover is critical for the South Asian nation as its foreign exchange reserves have dipped to just four weeks worth of imports at a time when it is locked in talks with the International Monetary Fund (IMF) to secure bailout funds.
Meanwhile, Dar explained that Pakistan conducts two types of business with China.
“One is the SAFE deposit, which is a business between the central bank of China and the central bank of Pakistan (State Bank of Pakistan), which is a sovereign business.”
“Second business is with the commercial banks of China including Industrial and Commercial Bank of China (ICBC), Bank of China, China Development Bank,” he said.
As Pakistan struggles to avert a default on its obligations, the only help so far has come from longtime ally Beijing.
Earlier this month confirmed the country’s central bank had recieved $500m from ICBC. The latest transfer was the second disbursement of $500m for Pakistan as part of a US$1.3b rollover facility from the institution.

Economic Affairs