A meeting between Chinese Ambassador to Pakistan Nong Rong and Finance Minister Muhammad Ishaq Dar discussed the issue of rollover and refinancing of about $6.3 billion in trade credit and central bank loans. According to Finance Ministry officials, $3.3 billion in Chinese commercial loans and $3 billion in secured deposits are maturing between now and June next year, The Express Tribune reported. Safe deposits are held on the central bank’s balance sheet. In addition, bilateral Chinese debt of over $900 million is on track to fall due during the current fiscal year.
For the current fiscal year, the International Monetary Fund and the Ministry of Finance estimate Pakistan’s total external financing needs to be between $32 billion and $34 billion, excluding the impact of the recent devastating floods.
Pakistan has already received a loan of $2.2 billion during the July-September quarter, while Saudi Arabia also announced the maturity of a loan of $3 billion in December this year. The country still needs to arrange $29 billion and is looking for a rollover of at least $6.3 billion to $7.2 billion from China in addition to any new loans.