Finance Minister Ishaq Dar debunked rumors that negotiations were still ongoing by confirming that a $2 billion loan from China has been rolled over and the issue is no longer pending.
Dar responded to a question in Parliament by Senator Raza Rabbani of the Pakistan Peoples Party (PPP) by saying, “I want to confirm that the $2 billion deposit from China, which was due on 23 March, is no longer pending.”
Additionally, the paperwork (for this debt) for 2023–24 is finished, he added.
China is still considering Pakistan’s proposal to extend the loan that matured last week, a previous story by Reuters had stated.
Under the condition of secrecy, the source was cited by Reuters as saying, “It is a work in progress.” An official statement will be made and formal documentation is underway, the report had added.
Pakistan needs to turn over its debt because its foreign currency reserves are now only enough to cover four weeks’ worth of imports and it is currently in bailout negotiations with the International Monetary Fund (IMF).
Ishaq Dar, however, criticized the story as totally speculative. He went on to say that Pakistan does two different kinds of commerce with China.
The second transaction is with Chinese private institutions like the Industrial and private Bank of China (ICBC), the Bank of China, and the China Development Bank, he added.
Beijing, Pakistan’s longstanding ally, has been its only source of assistance as it battles to avoid defaulting on its commitments.
