China has announced a rollover of a $2 billion loan to Pakistan, providing crucial financial relief to the cash-strapped South Asian nation.
The announcement was confirmed by Pakistan’s caretaker Finance Minister, Shamshad Akhtar, during a press conference on Thursday.
The loan, initially scheduled to be repaid in March, has now been rolled over for an additional year, according to sources within the Pakistan finance ministry.
Beijing communicated its decision to Islamabad, indicating a continued commitment to supporting Pakistan during its economic challenges.
This extension comes at a crucial time for Pakistan, as it grapples with a financial crisis, attempting to stabilize its economy.
Last summer, Pakistan secured a $3 billion standby arrangement from the International Monetary Fund (IMF) to address its economic woes.
The move reflects China’s ongoing partnership with Pakistan, which has been characterized by extensive economic cooperation and infrastructure development projects under the China-Pakistan Economic Corridor (CPEC).
Pakistan’s external financial position remains vulnerable, making securing financing from both multilateral and bilateral partners a top priority. Fitch, the international ratings agency, highlighted this urgency in a recent report, stating that securing stable financial support will be one of the most pressing challenges for the next government.
Chioma Kalu
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