Active Development AidData Chinese Aid

Bank of China provides $200 million loan to shore up Pakistan’s foreign exchange reserves in September 2022 (Linked to Record ID#92085)

$200M USD

Funder	Bank of China (BOC)
Recipient Organization	State Bank of Pakistan (SBP)
Country	Pakistan
Start Date	Sep 13, 2022
End Date	Oct 27, 2027
Duration	1,870 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`97791`

Grant Description

Bank of China provides $200 million loan to shore up Pakistan’s foreign exchange reserves in September 2022 In November 2019, Bank of China provided a $200 million loan to the State Bank of Pakistan to shore up the country’s foreign exchange reserves (as captured via Record ID#92085).

📋 Loan / Grant Terms

💰 Loan Amountincluded a 2 year maturity (final maturity date: November 2021) and an interest rate between 6-month LIBOR plus a 2

📅 Maturity2 years

The loan was repaid in full in November 2022. However, it is unclear if the borrower ever secured a maturity extension through a debt rescheduling agreement.

Then, on September 13, 2022, Bank of China and the State Bank of Pakistan signed a $200 million rollover loan agreement to shore up the country’s foreign exchange reserves (as captured via Record ID#97791).

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: a 2 year maturity and an interest rate between 3-month LIBOR plus a 2

📅 Maturity2 years

It was fully disbursed in November 2022 and was reportedly used by the borrower to repay a $1 billion Sukuk bond in December 2022.

📋 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 lender of record is identified as 'BANK OF CHINA SR.BD.' by the Government of Pakistan. See https://ead.gov.pk/SiteImage/Publication/Quarterly%20Statistic%20Bulletin%20July%20-%20September,%202022-23.pdf and https://www.finance.gov.pk/survey/chapter_24/9_public%20debt.pdf3. The Government of Pakistan project (loan) identification number is BOC13092022.

📚 Sources & References

Financing, urea sought from China
Pakistan seeks support from Bank of China to bring back macroeconomic stability
PAKISTAN SEEKS SUPPORT FROM BANK OF CHINA TO BRING BACK MACROECONOMIC STABILITY
AIIB Transfers $500 Million to Pakistan
Announces Finance Minster
Pakistan Economic Survey 22-23
Pakistan gets $500m loan at 4.9% interest rate
Govt eyes $13b package after PM’s China visit
Chapter 09 Public Debt Pakistan Economic Survey 2023-24
QUARTERLY STATISTICAL BULLETIN ON FOREIGN ECONOMIC ASSISTANCE
Disbursement Report March 2023 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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