China has granted Pakistan a one-year extension on a $2 billion loan, providing crucial support for the country’s economic stability and recovery.
Originally set for repayment on March 24, the loan has now been rolled over, alleviating immediate financial stress on Pakistan’s economy.
The Ministry of Finance acknowledged China’s decision, emphasizing that this extension will help maintain robust foreign exchange reserves and bolster economic recovery efforts.
This rollover offers Pakistan significant financial relief as it works toward economic stabilization and fulfilling its financial commitments.
China remains a vital economic ally for Pakistan, supporting multiple financial and infrastructure initiatives, including projects under the China-Pakistan Economic Corridor (CPEC).
In the meantime, Pakistan’s total foreign exchange reserves saw a weekly decline of $51.9 million, bringing the overall reserves down to $15.87 billion, as per recent data.
Despite this decrease, the State Bank of Pakistan (SBP) reported an increase in its dollar holdings, which rose by $27.1 million to reach $11.2 billion.
Conversely, foreign reserves held by commercial banks experienced a significant dip, with bank deposits decreasing by $79 million to settle at $4.62 billion.
The fluctuation in foreign exchange reserves reflects ongoing economic challenges, as Pakistan navigates external debt repayments and rising import expenses.
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