Pakistan To Get Big Relief in $2 Billion Loan Payment to China

China has expressed willingness to roll over $2 billion in loans to Pakistan, Finance Ministry sources told ProPakistani. The loan, originally set to mature on March 23, 2024, is now expected to be rolled over for an additional year. Sources said China is willing to extend the maturity date of the $2 billion loans on existing terms. Notably, the interest rate on these deposits is less than 2 percent. This comes after last week when Caretaker Prime Minister Anwar Haq Kakar wrote a letter to Chinese Prime Minister Li Keqiang. The letter urged China to consider postponing the repayment of the $2 billion loan for one year. Out of the $4 billion deposits received from China, $2 billion will mature on March 23, 2024. The caretaker government is seeking a one-year extension on the repayment. Earlier this month, the State Bank of Pakistan received the second tranche of $705.6 million from the International Monetary Fund (IMF) under the $3 billion Stand-By Arrangement (SBA).