Active Development AidData Chinese Aid

China’s SAFE provides $500 million deposit loan to shore up Pakistan’s foreign exchange reserves on June 27, 2022

$500K USD

Funder	China State Administration of Foreign Exchange (SAFE)
Recipient Organization	Government of Pakistan
Country	Pakistan
Start Date	Jun 27, 2022
End Date	Sep 08, 2028
Duration	2,265 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`97808`

Grant Description

China’s SAFE provides $500 million deposit loan to shore up Pakistan’s foreign exchange reserves on June 27, 2022 On June 27, 2020, 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.

📋 Loan / Grant Terms

💰 Loan Amountcarried the following terms: a 1-year maturity (final maturity date: June 27

📅 Maturity1 year

⏳ Grace Period1 year

On June 27, 2021, the $500 million SAFE deposit loan from 2020 was repaid and reissued (i.e. 'rolled over') with a maturity date of June 27, 2022.

One year later, on June 27, 2022, the $500 million SAFE deposit loan from 2021 was repaid and reissued (i.e. 'rolled over') with a maturity date of June 27, 2023.

The Government of Pakistan announced in early June 2023 that it intended to repay and rollover the loan on June 27, 2023.

Then, on June 27, 2023, the $500 SAFE deposit loan from 2022 was repaid and reissued (i.e. 'rolled over) with a maturity date of June 27, 2024.

📋 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.
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

China rolls over $2bn loan for a year
Govt requests $2b loan rollover
China Continues to Rescue Pakistan Amid Uncertain IMF Bailout
China Keeps Rescuing Pakistan Amid Uncertain IMF Bailout
China to roll over $300m in three to four days: Dar
China returns $1 billion loan: SBP
Pakistan seeks fast-track refinancing of $1.3b loans
Dar hopes to maintain reserves level at $4b
Chapter 5 Domestic and External Debt
Public Debt Bulletin July-December 2022 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.