Completed Development AidData Chinese Aid

Bank of China provides $300 million loan to shore up Pakistan’s foreign exchange reserves in June 2023 (Linked to Record ID#97792)

$300M USD

Funder	Bank of China (BOC)
Recipient Organization	State Bank of Pakistan (SBP)
Country	Pakistan
Start Date	Jun 13, 2023
End Date	Dec 18, 2033
Duration	3,841 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`97898`

Grant Description

Bank of China provides $300 million loan to shore up Pakistan’s foreign exchange reserves in June 2023 In June 2020, Bank of China provided a $300 million loan to the State Bank of Pakistan to shore up the country’s foreign exchange reserves (as captured via Record ID#97792).

📋 Loan / Grant Terms

💰 Loan Amountincluded a 3 year maturity (final maturity date: June 2023)

📅 Maturity3 years

⏳ Grace Period3 years

The loan was repaid in full on June 26, 2023.

Then, on June 13, 2023, Bank of China and the State Bank of Pakistan signed a $300 million rollover loan agreement to shore up the country’s foreign exchange reserves (as captured via Record ID#97898).

📋 Loan / Grant Terms

💰 Loan Amountcarried a 2-year maturity and an interest rate of 3-month SOFR plus a 3

📅 Maturity2 years

📋 Staff Comments

Some sources suggest that the June 13, 2023 loan carried a 2% margin rather than a 3.5% margin. This discrepancy warrants further investigation.
The Government of Pakistan's loan identification number for the $300 million BOC borrowing in June 2023 is BOC16062023. See https://www.ead.gov.pk/SiteImage/Misc/files/2023/Report-June-2023.pdf

📚 Sources & References

Pakistan Economic Survey 22-23
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 09 Public Debt Pakistan Economic Survey 2023-24
Monthly Report Foreign Economic Assistance June,2023
NFC award: govt official says IMF has attached no conditions 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.