Business

China extends $3.4b loan for Pakistan

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Web Desk

ISLAMABAD: China on Sunday extended a $3.4 billion commercial loan to Pakistan, a major relief to its ailing economy.

The move has helped Pakistan reach the critical level of $14 billion in reserves as per the conditions set by the International Monetary Fund (IMF), a leading news agency reported.

The rollover includes $2.1 billion that was deposited with the State Bank of Pakistan (SBP) for the past three years, now extended once again.

Moreover, $1.3 billion in commercial loans that were disbursed two months ago have also been renewed, easing the pressure on immediate repayment.

In addition to the Chinese assistance, Pakistan has secured $1 billion in commercial financing from Middle Eastern banks, further strengthening the country’s liquidity position.

Additionally, the government has secured $500 million in multilateral financing, which has increased its reserves.

The financial assistance comes at a critical time as Pakistan is working to meet the IMF’s requirement to maintain foreign reserves of $14 billion by June 30.

The fund’s terms are linked to Pakistan’s ongoing negotiations for a new long-term lending program, which is expected to follow the recently completed $3 billion Stand-By Arrangement.

Web Desk

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