ISLAMABAD: Pakistan on Saturday requested China to roll over its $6.3 billion debts that are maturing over the next eight months as part of Islamabad's plan to arrange up to $34 billion to meet its debt and external financing obligations this fiscal year, Pakistani media reported.
Pakistani officials and the International Monetary Fund (IMF) have estimated the country’s gross external financing requirements between $32 billion to $34 billion. It does not include the impact of the recent devastating floods.
Pakistan has already obtained $2.2 billion loans from July till September, while Saudi Arabia has announced rolling over $3 billion debt, maturing in December this year. The country still needs to arrange $29 billion and it is looking for minimum $6.3 billion to $7.2 billion rollovers from China in addition to any fresh lending, Pakistan's Express Tribune newspaper reported.
The issue of rollover and refinancing of nearly $6.3 billion commercial loans and the central bank debt was discussed at a meeting between China's Ambassador to Pakistan Nong Rong and Finance Minister Ishaq Dar.
"The $3.3 billion Chinese commercial loans and the $3 billion worth SAFE deposits loans were maturing from now till June next year," the report read.
"The SAFE deposit is on the balance sheet of the central bank. In addition to this, over $900 million bilateral Chinese debt was becoming due during the current fiscal year."
The development comes ahead of Prime Minister Shehbaz Sharif's visit to China early next month.
The Pakistan premier is likely to discuss a number of new projects and requests to roll over the existing debt, considering sanctioning of new debt and preferential trade treatment for certain exportable goods, according to the report.
Another proposal under consideration is to seek a fresh Chinese loan to repay the maturing bilateral debt during fiscal year 2022-23.
