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China’s SAFE provides $2 billion deposit loan to shore up Pakistan’s foreign exchange reserves in March 2020 (Linked to Record ID#92087, 73343)
| Funder | China State Administration of Foreign Exchange (SAFE) |
|---|---|
| Recipient Organization | Government of Pakistan |
| Country | Pakistan |
| Start Date | Mar 23, 2020 |
| End Date | Jan 12, 2032 |
| Duration | 4,312 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 97848 |
Grant Description
China’s SAFE provides $2 billion deposit loan to shore up Pakistan’s foreign exchange reserves in March 2020 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
- 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).
- The World Bank's Debtor Reporting System records the 2020 SAFE loan as having a 2-year maturity and 2-year grace period rather than a 1-year maturity and 1-year grace period. See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 and https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0. This discrepancy warrants further investigation
Sources & References
- Dar confirms rollover of $2bn China loan, says issue is ‘no longer pending’
- Govt requests $2b loan rollover
- Govt gets financial relief as China rolls over $4.2b debt
- Ishaq Dar confirms rollover of 2 billion Chinese loan
- Ishaq Dar confirms rollover of $2 billion Chinese loan
- China assures Pakistan of continued support
- P A K I S T A N F E D E R A L PUBLIC EXPENDITURE REVIEW 2023
- PAKISTAN REQUEST FOR PURCHASE UNDER THE RAPID FINANCING INSTRUMENT—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR PAKISTAN
- DRS Official Commitments from China Through 2021
- China has rolled over $2bn loan
- Dar tells Senate
- IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments
- NATIONAL ASSEMBLY SECRETARIAT (6th Group, 51st Session) “QUESTIONS FOR ORAL ANSWERS AND THEIR REPLIES” to be asked at a sitting of the National Assembly to be held on Wednesday, the 5th April, 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.
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Government of Pakistan
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