China rolls over $3.4b loan to Pakistan
Rollover boosts foreign reserves of Pakistan to $14b
China has rolled over a commercial loan worth $3.4 billion to Pakistan, a major relief for the latter's fragile economy, the 24NewsHD TV channel reported on Sunday.
According to a report by a leading news agency, the move has helped Pakistan reach the critical reserve level of $14 billion, in line with conditions set by the International Monetary Fund (IMF).
The rollover includes $2.1 billion that had been deposited with the State Bank of Pakistan (SBP) for the past three years, now extended once again.
Additionally, $1.3 billion in commercial loans—previously repaid two months ago—have also been renewed, easing immediate repayment pressures.
Apart from Chinese assistance, Pakistan has secured $1 billion in commercial financing from Middle Eastern banks, further supporting the country’s liquidity position.
Moreover, the government has obtained $500 million in multilateral financing, adding to its reserve buildup.
The financial support comes at a critical time as Pakistan works to meet the IMF’s requirement of maintaining $14 billion in foreign reserves by June 30.
The fund’s conditions are tied to Pakistan’s ongoing negotiations for a new long-term loan program, which is expected to follow the recently concluded $3 billion Stand-By Arrangement.