Islamabad: China and Pakistan have maintained friendly consultations on therenewal of the 15 billion RMB yuan loan and are “making efforts in apositive direction”, the Chinese embassy in Islamabad said Thursday.
“The two sides have maintained close and friendly consultations on therenewal of the 15 billion RMB yuan loan and are making efforts in thepositive direction,” the embassy spokesperson told APP when asked tocomment on the development as China rolled over the commercial loan forPakistan.
Foreign Minister Shah Mahmood Qureshi, who held a meeting with China’sState Councilor and Foreign Minister Wang Yi in Huangshan on Wednesday,said Beijing had reaffirmed that “it was and would always stay a close allyof Pakistan”.
In a video message after the one-on-one meeting with his Chinesecounterpart, Qureshi announced that China had promised to strengthenPakistan’s regional and strategic importance.
“I am immensely happy to share that the Chinese FM has given a nod ofapproval on the rollover of commercial loan as well,” he said.
The debt, which was due to mature this week, has been rolled over providinga major financial relief to Pakistan.
The foreign minister said the procedural formalities were being completedby relevant authorities, adding that an announcement in this regard wouldbe made soon.
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He said China had also assured to help the country to counter theinternational shortage of diesel.
A statement by Pakistan’s Ministry of Finance said that the government ofPakistan and the People’s Republic of China had strong economic tiesspanning the last many decades.
“The ongoing financing facilities include SAFE deposits, bilateral as wellas commercial loans,” it said.
The Finance Ministry said, “To buttress the efforts of economicstabilization, the government of Pakistan has been in communication withthe Chinese authorities for the roll-over/refinancing of all ongoingfacilities upon their maturity.”
It added that two facilities worth USD 4.3 billion matured in the month ofMarch, of which SAFE deposits worth USD 2 billion have been rolled over andthe roll-over of the syndicate facility of RMB 15,000 million (i.e.,approximately USD 2.3 billion) is being processed. These facilities arebeing used for the balance of payments and budgetary support.
