Completed Development AidData Chinese Aid

China’s SAFE provides $2 billion deposit loan to shore up Pakistan’s foreign exchange reserves in March 2021 (Linked to Record ID#73343, 97848, 97851, 97852, 92087)

$2M USD

Funder	China State Administration of Foreign Exchange (SAFE)
Recipient Organization	Government of Pakistan
Country	Pakistan
Start Date	Mar 23, 2021
End Date	May 29, 2031
Duration	3,719 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`97849`

Grant Description

China’s SAFE provides $2 billion deposit loan to shore up Pakistan’s foreign exchange reserves in March 2021 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).

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: a 1-year maturity

📅 Maturity1 year

⏳ Grace Period1 year

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 (as captured via Record ID#97848).

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 (as captured via Record ID#97849).

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 (as captured via Record ID#97851).

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 (as captured via Record ID#97852).

📋 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

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
China has rolled over $2bn loan
Dar tells Senate
DRS Official Commitments from China Through 2021
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.

All Grantees

Government of Pakistan

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