Pakistan awaits China's decision on rollover of $2 billion loan

A Pakistani security guard sits outside the currency exchange shop in Lahore on January 3, 2018. (AFP/File)
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Updated 30 March 2023
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Pakistan awaits China's decision on rollover of $2 billion loan

  • The rollover is critical for Pakistan as foreign exchange reserves have dipped to just four weeks worth of imports
  • As Pakistan struggles to avert a default on its obligations, the only help so far has come from longtime ally Beijing

KARACHI: China is working on a request by Pakistan to roll over a $2-billion loan that matured last week, a top finance ministry official told Reuters.

The rollover is critical for the South Asian nation, as its foreign exchange reserves have dipped to just four weeks worth of imports at a time when it is locked in talks with the International Monetary Fund (IMF) to secure bailout funds.

"It is a work in progress," the official said in a text message on Wednesday, on condition of anonymity. "Formal documentation is underway."

A formal announcement will be made, the source added, but gave no further details. The loan matured on March 23.

As Pakistan struggles to avert a default on its obligations, the only help so far has come from longtime ally Beijing, through a refinancing of $1.8 billion already credited to Pakistan's central bank.

The IMF funding is critical for Pakistan to unlock other external financing avenues, and the two have been negotiating since early February to resume $1.1 billion in funding held since November, part of a $6.5 billion bailout agreed in 2019.

One of the lender's last remaining conditions for release of the tranche is securing an assurance on external financing to fund Pakistan's balance of payments.


Government says Imran Khan’s ‘detailed’ medical report shared, family disputes claim

Updated 57 min 16 sec ago
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Government says Imran Khan’s ‘detailed’ medical report shared, family disputes claim

  • Khan underwent an eye procedure last month, PTI says family was not informed
  • Ex-PM’s sister says only brief notes provided despite Supreme Court assurance

ISLAMABAD: Pakistan’s government said on Friday a “detailed” medical report of jailed former prime minister Imran Khan had been shared with his family following directions from the prime minister’s office, even as Khan’s relatives disputed the claim and accused jail authorities of withholding information.

Concerns over Khan’s health were raised by his family and the Pakistan Tehreek-e-Insaf (PTI) party last month after the government confirmed he was taken from prison to the Pakistan Institute of Medical Sciences (PIMS) for a brief eye procedure. Authorities said at the time that Khan’s condition was stable and the treatment routine, while PTI leaders said they were not informed in advance and questioned the lack of transparent medical disclosure.

Information Minister Attaullah Tarar said the report was prepared by PIMS and had been forwarded to the prison authorities and handed over to Khan’s family.

“A letter was written by the Leader of the Opposition to the Prime Minister and PTI Leaders also approached the Supreme Court of Pakistan regarding medical check up of Mr. Imran Ahmad [Khan] Niazi who is serving his sentences in Central Jail Rawalpindi (Adiala),” he said in a social media post on X.

“On directions from Prime Minister’s Office, a detailed report has been sent by Executive Director PIMS Hospital to the Superintendent of Central Jail Rawalpindi (Adiala) which has been handed over to the family,” he added.

 

However, the former prime minister’s sister Aleema Khan said they had not received complete medical reports, despite assurances given by the country’s top judge.

“The Chief Justice of the Supreme Court committed last Friday that Imran Khan’s medical reports would be provided to his family,” she said on X. “Today, when the jail superintendent appeared before the ATC [Anti-Terrorism Court], only two brief notes were submitted.”

She said the government’s conduct reflected a disregard for the court’s order, urging the Chief Justice of Pakistan to issue a contempt notice to the jail authorities and ensure that Khan’s medical reports were handed over to his family without further delay.

The dispute has renewed tensions surrounding Khan’s incarceration, which has become a flashpoint in Pakistan’s deeply polarized politics. 

Khan, who served as prime minister from 2018 to 2022, has been in prison since August 2023 following multiple convictions that he and his party say are politically motivated, a charge the government denies.