ISLAMABAD: Finance Minister Ishaq Dar said on Saturday that Pakistan cleared the dues of Chinese banks ahead of time to secure refinancing, though the arrangement came at no extra cost to the country. Besides, another $300 million would be rolled over in three to four days, he said.
Mr Dar’s statement came a day after the government announced that about $2.3 billion in Chinese loans would be rolled over before the ongoing fiscal year ends on June 30.
That included the repayment and refinancing of $1.3bn loans and $1bn State Administration of Foreign Exchange (SAFE) deposit.
Later on Friday night, the State Bank of Pakistan confirmed to have received $1bn. Mr Dar said this amount had been paid back to the China Development Bank on Monday and it was rolled over within a week after the bank agreed to refinance the loan facility to Pakistan.
Besides, another $300m loan had been paid back to the Bank of China on Friday, Mr Dar said, hoping that it would be refinanced in three to five days.
As for the remaining $1bn, to be paid to China as a state-to-state payment, he said it would be done in two equal instalments of $500m and this would be renewed as well.
“I thank Almighty that things are on track and want to clarify this to those who were making guesswork at media,” he added.
Mr Dar earlier decided to hold a news conference on Saturday, though he preferred to release only a recorded statement later.
He recalled that some rating agencies had predicted the chances of Pakistan’s default due to huge repayments in May and June. “But I had given a reaction at that time too that the arrangements were in place,” he said.
The credit rating agencies Fitch and Moody’s Investors Service earlier expressed concerns over Pakistan’s low foreign exchange reserves, warning that it would make it difficult for the country to repay foreign loans in June.