Federal Minister for Finance and Revenue Ishaq Dar announced Friday that China will soon roll over a $1 billion loan that was paid back recently, thus providing relief during the country’s acute forex crisis.

A meeting of the National Assembly Standing Committee on Finance and Revenue was held in Islamabad today where the finance minister briefed about China’s imminent rollover of a $1 billion loan which was earlier paid in full by the federal government. Dar said Pakistan will receive $1 billion either today or on Monday.

The minister pointed out that Pakistan is also in talks with Bank of China for an amount of $300 million.

Dar told the committee that Pakistan has assets worth billions of dollars, including the Reko Diq mine having assets worth $3,000 billion.

He acknowledged Pakistan’s severe external debt-servicing issue but reiterated that the country will not default on its obligations. The finance minister blamed global politics for all the problems faced by Pakistan but expressed hope that nothing bad would happen.

Dar’s remarks come as Pakistan seeks forex cover to avoid defaulting on its debt obligations. While the government has been in constant dialogue with the International Monetary Fund since November for a bailout, the only help so far has come from China.

In March, the State Bank of Pakistan received $500 million from the Commercial Bank of China. This was the institution’s second $500 million transfer to Pakistan as part of a $1.3 billion rollover facility.

In February, China Development Bank refinanced a $700 million loan, bringing the total facility from Chinese institutions to $2 billion.

Source: Pro Pakistani