China extends $2bn loan to Pakistan for one-year term

ISLAMABAD: China has extended a $2 billion loan to Pakistan, the Finance Ministry confirmed on Saturday.

The ministry said the $2 billion loan was due on March 24 and has been extended for one year, adding that Beijing has informed Islamabad of the decision.

The ministry said in a statement that Pakistan’s long-standing friend China continues to provide economic support for the country’s economic stability and recovery.

This will bolster Pakistan’s foreign exchange reserves as a mission of the International Monetary Fund (IMF) is in Pakistan for an economic review under the $7 billion loan program.

Earlier this year, the United Arab Emirates (UAE) extended its $2 billion reserves held with the State Bank of Pakistan (SBP) for another period.

Prime Minister Shehbaz Sharif made the announcement after a one-on-one meeting with UAE President Sheikh Mohammed bin Zayed Al Nahyan in Rahim Yar Khan. He said that the two countries have brotherly relations.

He said that stability is returning to the economy with the efforts of every member of the government, adding: “The day is not far when we will become a prosperous nation and achieve our rightful place.”

He appreciated the increase in exports led by textiles, saying that this sector can play a key role in the country’s development.