Chinese SAFE deposits rollover renewed, says Finance Minister

Chinese rollover with the State bank of Pakistan (SBP) has matured on March 23, as per schedule. the rollover has been renewed for further one year to March 23, 2024 as well.

The Finance Minister Ishaq Dar while talking to a publication answered the question on the rollover of $2 billion in SAFE deposits with a “yes.”

The rollover of Chinese SAFE deposits was one of the conditions set forth by the IMF to fulfill the country’s demand for external finance and advance toward the long-awaited staff-level agreement.

The Memorandum of Economic and Financial Policy (MEFP) had nine tables that must be completed.

One of the tables deals with Net International Reserves (NIR) as an indicative target that cannot be met without taking into account the external financing requirements of the program period through the end of June 2023.

The IMF’s demand that Pakistan fills the $6 billion deficit is only an effort to maintain its credibility. Pakistan might default if the plan doesn’t materialize.

The fact that representatives of Gulf nations on the Executive Board had committed to giving Islamabad financial support in a variety of ways before the approval of the seventh and eighth reviews forced the Fund to make this demand during negotiations. They comprised further investments and deposits.

As per media reports, all eyes are now on the UAE, Qatar, and the Kingdom of Saudi Arabia (KSA) to save Pakistan’s faltering economy.