Islamabad – In a significant financial development, China has rolled over a $3.4 billion loan to Pakistan, providing crucial support to help the country meet its foreign exchange reserve targets set under the International Monetary Fund (IMF) conditions.
According to news agency reports, the State Bank of Pakistan (SBP) has successfully rolled over $2.1 billion, which had been with the central bank for the past three years. In addition, $1.3 billion in other commercial loans have also been extended.
The $1.3 billion in commercial debt had been repaid two months ago and has now been restructured. Alongside this, Pakistan has also received $1 billion from commercial banks in the Middle East, further bolstering its financial position.
Furthermore, Pakistan has secured $500 million in multilateral financing, contributing to efforts aimed at strengthening economic stability.
These inflows are a timely boost, as Pakistan is required to maintain foreign exchange reserves of $14 billion by June 30, in line with IMF agreements. The rollover of loans by China is seen as a strong gesture of continued strategic and financial support at a critical time for Pakistan’s economy.
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