China Eximbank provides RMB 1.019 billion government concessional loan for Pakistan Space Centre Project

Project narrative

On January 21, 2022, the Chinese Government and the Government of Uganda signed a preferential loan framework agreement for the Pakistan Space Centre Project. Then, in April 2023, the Government of Pakistan and China Eximbank signed an RMB 1.019 billion government concessional loan (GCL) agreement for the Pakistan Space Centre Project. The loan carries the following borrowing terms: a 20-year maturity, a 5-year grace period, a 2% interest rate, a 0.2% commitment fee, and a 0.25% management fee. The borrower is expected to use the proceeds of the loan to finance a commercial contract between Pakistan Space and Upper Atmosphere Research Commission (SUPARCO) and China Great Wall Industry Corporation (CGWIC). The purpose of the project is to establish indigenous satellite development facilities — known as the Pakistan Space Centre (PSC) — in Karachi, Lahore and Islamabad in accordance with international space standards. Upon completion, these facilities are expected to have the capability to carry out manufacturing, testing, system level assembly, integration, launch and operations of various types of satellites. China Great Wall Industry Corporation (CGWIC) is the contractor responsible for implementation. The project was originally scheduled to reach completion in April 2022. However, it encountered implementation delays.