Chinese Embassy confirms acceptance of huge debt repayment rollover by China for Pakistan

Islamabad: The Chinese embassy in Pakistan has confirmed that China had acceded to Pakistan’s request to rollover a whopping US $ 4.2 billion debt repayment to provide a major relief for its all-weather ally.

Chinese Foreign Minister Wang Yi in his meeting with Pakistan counterpart Shah Mehmood Qureshi on the sidelines of the 3rd meeting of the ‘Foreign Ministers of Neighbouring Countries of Afghanistan’ in China’s eastern Anhui province conveyed Beijing’s decision to rollover the debt.

In a video message on arrival in Pakistan, FM Qureshi maintained that FM Wang YI had conveyed China’s decision to rollover Pakistan US $ 4.2 billion to enable Islamabad to tide over the current economic crisis.

“I am immensely happy to share that the Chinese Foreign Minister has given a nod of approval on the rollover of commercial loan as well,” Qureshi stated in the video in Urdu language.

The US $ 4.2 billion debt, which was maturing this week, has been rolled over providing major financial relief to Pakistan.

“The procedural formalities are being completed by relevant authorities. An announcement will be made as soon as they’re sorted,” FM Qureshi remarked.

The request for rollover was reportedly made by Pakistani Prime Minister Imran Khan during his meeting with Chinese President Xi Jinping here in February to attend the opening ceremony of the Beijing Winter Olympics.

A Chinese Embassy spokesperson in Islamabad confirmed that China and Pakistan had maintained friendly consultations on the renewal of the loan and are “making efforts in a positive direction.”

“The two sides have maintained close and friendly consultations on the renewal of the loan and are making efforts in the positive direction,” the embassy spokesperson mentioned.

A statement by Pakistan’s Ministry of Finance acknowledged that the government of Pakistan and the People’s Republic of China had strong economic ties spanning the last many decades. “The ongoing financing facilities include SAFE deposits, bilateral as well as commercial loans,” it added.

The Finance Ministry further said: “To buttress the efforts of economic stabilization, the government of Pakistan has been in communication with the Chinese authorities for the roll-over/refinancing of all ongoing facilities upon their maturity.”