ISLAMABAD - Minister for Finance and Revenue Ishaq Dar Saturday said that Pakistan will soon receive one billion dollars loan from China.
Addressing a news conference, he said the loan will be obtained under state to state agreement. He said Pakistan repaid one billion dollars of China Development Bank and 300 million dollars of Bank of China this month. He said Pakistan was not charged with any fine for early repayment.
The minister said after repayment of loans Pakistan received one billion dollars loan from China Development Bank on Friday. He said Pakistan will also receive 300 million dollars from Bank of China in coming few days. He reiterated the government's resolve to ensure timely payment of all external liabilities. The finance minister clarified that Shell Petroleum Company is not closing its business in Pakistan. He said the company is selling its shares to another international investor. Ishaq Dar also reaffirmed the firm resolve of the government to ensure international payments on time in order to fulfill all the commitments. He said that all the arrangements for due payment during the months of May and June were in place, which would also have no impact on foreign exchange reserves held with local commercial banks and State Bank of Pakistan. The minister said that by the end of the current month (June), payments of two Chinese banks including $1 billion of China Development Bank and $300 million of Bank of China were due.
He said the adoption of formal payment process usually takes time and sometimes, it takes months, adding that to simplify the formal procedures, the Ministry of Finance initiated negotiations with both the banks and ask them to make payments before last week.
The payment to China Development Bank was made on June 12, 2023 and under the understanding between both countries, the Chinese banks will payback this amount to Pakistan on Friday, he added.
The minister said that another payment amounting to $300 million was also made on Friday, adding that this payment would also be received to Pakistan within next three to four days, he added.
The finance minister further said that all the arrangements for the payment of $1 billion, which was state-to-state payments between both countries, were also finalised and matters were in order.
He said that the government was also aware about all the programs of the Company and it was legally bound to take the government into confidence. Shell is selling its shares to another international investor and its business will continue and no one will be deprived from livelihood, he concluded.
