Completed Development AidData Chinese Aid

China Development Bank provides $700 million loan in 2016 to shore up Pakistan’s foreign exchange reserves

$700K USD

Funder	China Development Bank (CDB)
Recipient Organization	State Bank of Pakistan (SBP)
Country	Pakistan
Start Date	Sep 20, 2016
End Date	Apr 02, 2027
Duration	3,846 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`50483`

Grant Description

China Development Bank provides $700 million loan in 2016 to shore up Pakistan’s foreign exchange reserves On September 20, 2016, China Development Bank and the State Bank of Pakistan signed a $700 million short-term loan agreement to prevent a balance of payments crisis.

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: a 3 year maturity

📅 Maturity3 years

⏳ Grace Period3 years

It fully disbursed.

📋 Staff Comments

In its 2016-2017 Yearbook, the Economic Affairs Division (EAD) of the Government of Pakistan identified total loan commitments from CDB as $1.7 billion. This aggregate figure refers to the $700 million CDB loan issued in 2016 (captured via Project ID#50483) and the $1 billion CDB loan issued in 2017 (captured via Project ID#54158).
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

Pakistan to Get $4.6 Billion in New Foreign Loans
Pakistan gets $4.6b in fresh foreign loans
Third Quarterly Report Chapter 4
The State of Pakistan's Economy - Third Quarterly Report, 2017-18 Pakistan Economic Survey, 2019-2020 Pakistan Economic Survey, 2018-2019 Pakistan Economic Survey: Statistical Supplement
Year Book 2016-2017
MONTHLY DISBURSEMENT REPORT OF FOREIGN ECONOMIC ASSISTANCE FOR THE MONTH OF JUNE, 2016-17
Final PCP Year Book
Final PCP Year Book
Pakistan Development Update
THE STATE OF PAKISTAN’S ECONOMY
Pakistan Development Update
The China-Pakistan Avoidance of Double Taxation Agreement and the China- Pakistan Economic Corridor 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.