China rolled over $2 billion loan to Pakistan on March 23 — finance minister

This handout picture, released by Finance Ministry on January 17, 2023, shows Pakistan's finance minister Ishaq Dar chairing the Economic Coordination Committee in Islamabad. (Photo courtesy: Twitter/FinMinistryPak)
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Updated 31 March 2023
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China rolled over $2 billion loan to Pakistan on March 23 — finance minister

  • Finance minister Ishaq Dar says Chinese loan no more in the pipeline
  • Rollover critical for Pakistan as it faces a balance of payment crisis

ISLAMABAD: Pakistani Finance Minister Ishaq Dar said on Friday China had rolled over a $2 billion loan to the cash-strapped country on March 23, dismissing what he called “speculative” media reports that the loan was still in the pipeline.

The rollover of the loan is critical for Pakistan as it faces a balance of payment crisis, soaring inflation, and dwindling foreign exchange reserves, barely enough to cover a month of controlled imports.

Islamabad has been negotiating with the IMF since early February for the release of $1.1 billion from a $6.5 billion bailout package agreed in 2019.

One of the IMF's conditions for the release of the tranche is assurance of external financing to fund Pakistan's balance of payments. Longtime ally Beijing is the only help Islamabad has got so far, with refinancing of $1.8 billion credited last month to Pakistan's central bank.

“I am happy to confirm that this [loan] had been rolled over on March 23,” the finance minister told parliament on Friday, responding to a Reuters report this week that quoted an anonymous source as saying China was still working on a request by Pakistan to roll over a $2-billion loan that matured last week.

“The documentation [related to the loan] for 2023 and 2024 has been completed, this loan stands rollover and is no longer in the pipeline.”

Dar's comments were the first official announcement of the rollover after the loan matured. Dar did not give the new maturity date or other terms of the arrangement.


Pakistan Navy tests surface-to-air missile in Arabian Sea, reaffirms defense resolve

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Pakistan Navy tests surface-to-air missile in Arabian Sea, reaffirms defense resolve

  • The test follows a brief conflict with India that involved missile, artillery and drone exchanges but no naval clashes
  • Pakistan has stepped up battle readiness more recently, with senior commanders overseeing major training exercises

ISLAMABAD: The Pakistan Navy reaffirmed its resolve to defend the country’s territorial waters on Monday after conducting a live firing test of a surface-to-air missile in the northern Arabian Sea, according to a military statement.

The missile test involved the FM-90(N) ER, a medium-range naval air-defense system designed to intercept aerial threats, and comes months after a brief but intense military conflict between Pakistan and India in which the nuclear-armed neighbors exchanged missile and artillery fire and deployed drones and fighter jets.

While the four-day confrontation did not escalate into a naval clash, the Pakistan Navy remained on high alert until a US-brokered ceasefire brought the fighting to an end.

“Pakistan Navy successfully conducted a Live Weapon Firing (LWF) of the FM-90(N) ER Surface-to-Air Missile in the North Arabian Sea,” the military’s media wing, Inter-Services Public Relations (ISPR), said in a statement.

“During the firepower demonstration, a Pakistan Navy ship effectively engaged highly manoeuvrable aerial targets, reaffirming the Navy’s war-fighting capability and combat readiness,” it added. “Commander Pakistan Fleet witnessed the live firing at sea onboard a Pakistan Navy Fleet unit.”

ISPR said the fleet commander commended officers and sailors involved in the exercise for their professionalism and operational competence, and reiterated the navy’s resolve to safeguard Pakistan’s maritime interests under all circumstances.

Pakistan has placed greater emphasis on battle readiness in recent months.

Last week, Chief of Defense Staff Field Marshal Asim Munir visited frontline garrisons of Gujranwala and Sialkot to observe a field training exercise involving tanks and drones, where he highlighted the importance of technological adaptability, saying modern warfare required agility, precision, situational awareness and rapid decision-making.