China has extended the repayment period of a $2 billion loan by another year in a major boost to Pakistan’s economic stability and recovery efforts.
The loan, which was originally due for repayment on March 24, has now been rolled over, easing immediate financial pressure on the country.
The Ministry of Finance confirmed the extension, stating that this decision by China will help Pakistan maintain strong foreign exchange reserves and support its economic recovery.
The rollover provides much-needed relief as Pakistan continues its efforts to stabilize its economy and meet its financial obligations.
China has been a key economic partner for Pakistan, assisting in various financial and infrastructure projects, including under the China-Pakistan Economic Corridor (CPEC).
Also Read: IMF seeks to boost NAB, anti-corruption entities for transparency
Meanwhile, Pakistan’s total foreign exchange reserves declined by $51.9 million in a week, bringing the country’s total reserves down to $15.87 billion, according to the latest figures.
Despite the overall decline, the State Bank of Pakistan (SBP) recorded an increase in its dollar reserves. The SBP’s reserves rose by $27.1 million, reaching $11.2 billion.
However, the reserves held by commercial banks saw a significant decrease. Banks’ dollar deposits dropped by $79 million, reducing the total to $4.62 billion.
The fluctuation in foreign reserves comes amid ongoing economic challenges, with external debt repayments and import expenses putting pressure on Pakistan’s foreign exchange holdings.
