Pakistan repays $1 billion loan to China Development Bank ahead of schedule

According to press reports, Pakistan repaid a $1 billion loan to the Chinese Development Bank several weeks before it was due to repay; With the aim of ensuring that the Chinese Bank agrees to lend back Pakistan the same amount before the end of this month.

Pakistan’s Express Tribune newspaper said it had quoted unidentified officials from the Ministry of Finance and the Central Bank of Pakistan.

According to Bloomberg news agency, Pakistan expects to extend a $2.3 billion external loan this month.

It comes as Pakistan heads to bilateral creditors to try to change some of its repayment structure terms, as it is uncertain about completing an IMF bailout, which is due to expire later this month, and tries to avoid default.

Minister of Finance Ishak Dar told a press conference in Islamabad on Saturday that Prime Minister Shahbaz Sharif’s administration planned to hold talks on its bilateral debt, after the country’s parliament approved the budget for the new fiscal year, which begins on July 1, according to Bloomberg news agency last Saturday.