Shattering! China will provide Pakistan a $2 billion loan rollover
China has consented to give Pakistan an additional two years to repay a $2 billion debt. Pakistan Day, which falls on March 23, was when this debt was due. China originally intended to increase the interest rates on this loan, but it appears that they have changed their minds and chosen to lengthen the payback schedule.
After reaching a deal with Beijing, representatives of the Ministry of Finance are awaiting word from the Chinese embassy. Anwaarul Haq Kakar, Pakistan’s acting prime minister, asked China to prolong the loans last month.
Pakistan paid China, Saudi Arabia, and the United Arab Emirates a substantial sum of interest previous fiscal year, amounting to Rs26.6 billion. This sum grew by 118% over the prior year as a result of currency devaluation.
Although Pakistan has $8 billion in its official foreign exchange reserves, in hard economic times it has borrowed from neighboring countries. Repayment of this rising debt is becoming more difficult.
I am a dedicated student currently in my seventh semester, pursuing a degree in International Relations. Alongside my academic pursuits, I am actively engaged in the professional field as a content writer at the Rangeinn website.
