China Rolls Over $3.4 Billion in Loans to Support Pakistan’s Economy
ISLAMABAD: China has rolled over $3.4 billion in loans to Pakistan, offering a critical lifeline to the country as it works to meet foreign exchange reserve targets under its IMF agreement.
According to Reuters, the rollover includes $2.1 billion that has been held in the State Bank of Pakistanโs reserves for the past three years and $1.3 billion in commercial loans that were repaid just two months ago.
The move has not yet been officially announced by the government.
IMF Conditions Prompt Strategic Support
Alongside Chinaโs financial support, Pakistan has also secured $1 billion from Middle Eastern banks and $500 million through multilateral channels.
These inflows are key to maintaining reserves above $14 billion โ a core requirement under Pakistanโs ongoing $7 billion bailout program with the International Monetary Fund.
Reserves Strengthened Before Deadline
The deadline to meet the reserve benchmark was set for June 30.
Officials say the combined external support will not only help meet this target but also aid in stabilizing Pakistanโs fragile economic position amid ongoing reforms.
