China Rolls Over $3.4 Billion in Loans to Support Pakistan’s Foreign Reserves

KARACHI — China has rolled over $3.4 billion in loans to Pakistan, a move that will help Islamabad meet its foreign exchange reserve targets under its ongoing IMF program, a senior finance ministry official confirmed on Sunday.

Beijing renewed $2.1 billion already parked with Pakistan’s central bank for the past three years and refinanced another $1.3 billion commercial loan that Islamabad had repaid two months ago, the official said.

In addition, Pakistan recently secured $1 billion in loans from Middle Eastern commercial banks and another $500 million from multilateral financing institutions.

“These inflows have brought our reserves in line with the IMF target,” the official explained, noting that the International Monetary Fund requires Pakistan’s foreign exchange reserves to exceed $14 billion by the close of the current fiscal year on June 30.

Pakistan, which has faced persistent balance of payments crises and dangerously low reserves, is implementing wide-ranging economic reforms under a $7 billion IMF bailout program aimed at stabilizing its fragile economy.

Foreign loans, especially those from China, are critical to supporting Pakistan’s reserve position and avoiding another external financing crisis, experts say.

Pakistani authorities maintain that the reform program, backed by the IMF and supported by friendly nations, is steadily strengthening the country’s financial outlook.

Thank you for reading! For comprehensive news coverage and exclusive stories, visit SafartiTarjuman.com