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China’s SAFE provides $2 billion deposit loan to shore up Pakistan’s foreign exchange reserves in March 2018 (Linked to Record ID#73340 and #92087)
| Funder | China State Administration of Foreign Exchange (SAFE) |
|---|---|
| Recipient Organization | State Bank of Pakistan (SBP) |
| Country | Pakistan |
| Start Date | Mar 23, 2018 |
| End Date | Dec 18, 2030 |
| Duration | 4,653 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 73343 |
Grant Description
China’s SAFE provides $2 billion deposit loan to shore up Pakistan’s foreign exchange reserves in March 2018 On March 23, 2018, the People's Bank of China signed an agreement with the State Bank of Pakistan to provide a $2 billion loan — via China’s State Administration of Foreign Exchange (SAFE) — to shore up the country’s foreign exchange reserves (as captured via Record ID#73343).
The loan fully disbursed.
Then, on March 23, 2019, the $2 billion SAFE deposit loan from 2018 was repaid and reissued (i.e. 'rolled over') with a maturity date of March 23, 2020 (as captured via Record ID#92087).
One year later, on March 23, 2020, the $2 billion SAFE deposit loan from 2019 was repaid and reissued (i.e. 'rolled over') with a maturity date of March 23, 2021.
Then, on March 23, 2021, the $2 billion SAFE deposit loan from 2020 was repaid and reissued (i.e. 'rolled over) with a maturity date of March 23, 2022.
Then, on March 23, 2022, the $2 billion SAFE deposit loan from 2021 was repaid and reissued (i.e. 'rolled over'') with a maturity date of March 23, 2023.
Then, on March 23, 2023, the $2 billion SAFE deposit loan from 2022 was repaid and reissued (i.e. 'rolled over') with a maturity date of March 23, 2024.
Staff Comments
- The Economic Affairs Division (EAD) within Pakistan’s Ministry of Finance identifies the purpose of this loan as balance of payments (BOP) support.
- Umbrella Project ID#73340 records several similar SAFE loans to the Government of Pakistan.
- 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.
- Some sources suggest that China's SAFE issued the original (2018) $2 billion loan on July 23, 2018 rather than March 23, 2018. This issue warrants further investigation.
- Until 2018, all SAFE loans were managed by the State Bank of Pakistan (SBP). However, during the 2018-2019 fiscal year, the loans were reclassified and are now under the aegis of the Economic Affairs Division (EAD).
Sources & References
- Pakistan Economic Survey 2018-19
- Status Report July-June 2018-19
- Pakistan Economic Affairs Division
- Govt shifts China’s $2 bn SAFE deposit to loan category
- Pakistan got USD 6.5 billion loan from China in April: Report
- Status Report July-June 2018-19 on 21-August-2019
- China sanctions $2b loan for Pakistan to stem decline in forex reserves
- PAKISTAN STATISTICAL YEARB0OK 2019
- 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
- ONE YEAR OF NAYA PAKISTAN PRIME MINSTER'S OFFICE BOARD OF INVESTMENT ACHIEVEMENTS, (295th Session) 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, 2018-2019 Pakistan Economic Survey: Statistical Supplement
- Statistical Supplement Pakistan Economic Survey 2020-2021 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
State Bank of Pakistan (SBP)
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