China has rolled over a $2 billion loan to Pakistan, providing critical financial relief as the country navigates economic challenges.
The development was confirmed by Khurram Schehzad, an adviser to Pakistan’s finance minister, on Saturday, Arise News reported.
The loan extension comes as Pakistan works to stabilise its economy following a $7 billion bailout from the International Monetary Fund (IMF) in September 2024. The first installment of the bailout is currently under review, and a successful assessment could unlock an additional $1 billion in financial support.
Securing external financing has been a crucial requirement for Pakistan to access IMF bailout packages.
The country faces significant debt obligations, with over $22 billion in external repayments due in the 2025 fiscal year.
According to Fitch Ratings, this includes nearly $13 billion in bilateral deposits.
With mounting financial pressures, Pakistan continues to seek international assistance to manage its economic recovery and meet its financial commitments.
bd-pratidin/GR
