Finance minister Ishaq Dar said on Friday that China had rolled over a $2 billion loan that matured last week, providing relief during the nation’s acute balance of payment crisis.

Locking in a rollover had been critical for Pakistan, where reserves have dipped to just four weeks’ worth of imports and talks over an IMF bailout tranche of $1.1 billion have hit a stalemate.

“I am happy to confirm that this had been rolled over on March 23,” Dar told the Senate, referring to the maturity date. He said all concerned documentation had been completed.

Neither the government in Beijing nor the Chinese central bank responded to requests for comment on the rollover.

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.

A top finance ministry official told Reuters on Wednesday that a formal confirmation of the refinancing would be made after the process was completed.

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.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Terrorism upsurge
Updated 08 Oct, 2024

Terrorism upsurge

The state cannot afford major security lapses. It may well be that the Chinese nationals were targeted to sabotage SCO event.
Ban hammer
08 Oct, 2024

Ban hammer

THE decision to ban the PTM under the Anti-Terrorism Act is yet another ill-advised move by the state. Although the...
Water tensions
08 Oct, 2024

Water tensions

THE unresolved tensions over Indus water distribution under the 1991 Water Apportionment Accord demand a revision of...
A bloody year
Updated 07 Oct, 2024

A bloody year

Using the Oct 7 attacks as an excuse to wage endless aggression on Middle East, Israel has crossed all red lines.
Bleak cotton outlook
07 Oct, 2024

Bleak cotton outlook

THE extremely slow arrival of phutti at the ginning factories of Punjab and Sindh so far indicate a huge drop in the...
Killjoy neighbours
07 Oct, 2024

Killjoy neighbours

AT the worst of times in their bilateral relations, India and Pakistan have not shied away from carrying out direct...