Active Development AidData Chinese Aid

China’s SAFE provides $500 million deposit loan to shore up Pakistan’s foreign exchange reserves on June 29, 2023

$500K USD

Funder	China State Administration of Foreign Exchange (SAFE)
Recipient Organization	Government of Pakistan
Country	Pakistan
Start Date	Jun 29, 2023
End Date	Jul 21, 2030
Duration	2,579 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`102318`

Grant Description

China’s SAFE provides $500 million deposit loan to shore up Pakistan’s foreign exchange reserves on June 29, 2023 On June 29, 2019, China’s State Administration of Foreign Exchange (SAFE) provided a $500 million loan to State Bank of Pakistan in order to shore up the country’s foreign exchange reserves (as captured via Record ID#92088).

📋 Loan / Grant Terms

💰 Loan Amountcarried the following terms: a 1-year maturity (final maturity date: June 29

📅 Maturity1 year

⏳ Grace Period1 year

SAFE made a $500 million deposit (loan disbursement) in the State Bank of Pakistan on June 29, 2019.

Then, on June 29, 2020, the $500 million SAFE deposit loan from 2019 was repaid and reissued (i.e. 'rolled over') with a maturity date of June 29, 2021 (as captured via Record ID#97809).

One year later, on June 29, 2021, the $500 million SAFE deposit loan from 2020 was repaid and reissued (i.e. 'rolled over') with a maturity date of June 29, 2022 (as captured via Record ID#97810).

Then, on June 29, 2022, the $500 million SAFE deposit loan from 2021 was repaid and reissued (i.e. 'rolled over') with a maturity date of June 29, 2023 (as captured via Record ID#97804).

The Government of Pakistan announced in early June 2023 that it intended to repay and rollover the loan on June 29, 2023.

Then, on June 29, 2023, the $500 SAFE deposit loan from 2022 was repaid and reissued (i.e. 'rolled over) with a maturity date of June 29, 2024 (as captured via Record ID#102318).

📋 Staff Comments

According to an April 4, 2023 report from the National Assembly of Pakistan, ‘[a]ll of Chinese commercial bank maturities during FY23 will be rolled over. Chinese authorities have assured the rollover of SAFE deposits, refinancing of bank loans and increase in the SWAP line from RMB 30 billion to RMB 40 billion. Government has recently received US$ 700 mn from CDB and further inflows are in pipeline from ICBC.’ 2. June 30, 2023 marked the cessation of the USD LIBOR panel. SOFR then became the dominant interest rate benchmark for USD-denominated borrowings.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.

📚 Sources & References

SENATE SECRETARIAT ————— “QUESTIONS FOR ORAL ANSWERS AND THEIR REPLIES” to be asked at a sitting of the Senate to be held on Friday, the 17th January, 2020
Dar hopes to maintain reserves level at $4b
Pakistan seeks fast-track refinancing of $1.3b loans
China returns $1 billion loan: SBP
China to roll over $300m in three to four days: Dar
China Keeps Rescuing Pakistan Amid Uncertain IMF Bailout
China Continues to Rescue Pakistan Amid Uncertain IMF Bailout
Govt requests $2b loan rollover
China rolls over $2bn loan for a year
Chapter 5 Domestic and External Debt
NATIONAL ASSEMBLY SECRETARIAT (6th Group, 51st Session) “QUESTIONS FOR ORAL ANSWERS AND THEIR REPLIES” to be asked at a sitting of the National Assembly to be held on Wednesday, the 5th April, 2023
Govt’s tenure to end on Aug 14, says PM
Pakistan seeks $600mn in loans from Chinese banks
PAKISTAN REQUEST FOR A STAND-BY ARRANGEMENT—PRESS RELEASE; STAFF REPORT; STAFF STATEMENT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR PAKISTAN (IMF Country Report No. 23/260) Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Government of Pakistan

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