Completed Development AidData Chinese Aid

China Development Bank provides $700 million loan in February 2020 to shore up Pakistan's foreign exchange reserves (Linked to Record ID#92272, #96086)

$700K USD

Funder	China Development Bank (CDB)
Recipient Organization	State Bank of Pakistan (SBP)
Country	Pakistan
Start Date	Feb 01, 2020
End Date	Nov 21, 2026
Duration	2,485 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`90968`

Grant Description

China Development Bank provides $700 million loan in February 2020 to shore up Pakistan's foreign exchange reserves In February 2020, China Development Bank (CDB) and the State Bank of Pakistan (SBP) signed a $700 million facility (loan) agreement to shore up Pakistan’s foreign exchange reserves (as captured via Record ID#90968).

📋 Loan / Grant Terms

📅 Maturity3 years

⏳ Grace Period3 years

This loan was repaid at maturity (February 2023).

In February 2023, Pakistan’s Federal Minister for Finance and Revenue, Senator Mohammad Ishaq Dar, announced that the State Bank of Pakistan (SBP) had secured a $700 million (rollover) facility agreement with China Development Bank (CDB) to shore up Pakistan’s foreign exchange reserves (as captured via Record ID#96086).

📋 Loan / Grant Terms

💰 Loan Amountare as follows: a 3-year maturity and an interest rate of SOFR plus a 2% margin

📅 Maturity3 years

The loan disbursed in full on February 24, 2023.

Under a staff-level agreement with the IMF that was slated for signature on February 28, 2023, the SBP was required to build its foreign exchange reserves to a minimum of $10 billion to cover the country’s import bill for two months.

📋 Staff Comments

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.
The precise loan commitment date is unknown. This issue requires further investigation. For the time being, AidData assumed that the loan contracted in Fiscal Year 2019-2020 was contracted in calendar year 2019, and the commitment date is coded as July 1, 2019.
This project is linked to a $1 billion loan provided by CDB in FY 2019-2020. It is unclear whether CDB issued two separate loans (a $1 billion loan and a $700 million loan) or a single $1.7 billion loan in two separate tranches. For the time being, the $700 million contribution is captured via Project ID#90968 while the $1 billion contribution is captured via Project ID#92272.

📚 Sources & References

2019-2020 Pakistan Economic Survey, 2018-2019 Pakistan Economic Survey: Statistical Supplement
Statistical Supplement to the Pakistan Economic Survey 2019-2020
Satistical Supplement Pakistan Economic Survey 2019-2020
Statistical Supplement: Pakistan Economic Survey, (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 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.