China has rolled over a $2-billion loan to Pakistan, caretaker finance minister Shamshad Akhtar confirmed in a response to Reuters on Thursday.
The $2-billion loan was due in March and has been extended for one year, Geo News which first reported the news said, citing sources in the Pakistan finance ministry. Beijing had communicated the decision to Islamabad, it added.
Pakistan’s cash-strapped economy is struggling to stabilise from a financial crisis and secured a $3-billion Stand-By Arrangement (SBA) from the International Monetary Fund (IMF) last summer. On back of another Chinese loan, SBP-held forex reserves increase $487mn, now stand at $4.3bn
Pakistan’s vulnerable external position means that securing financing from multilateral and bilateral partners will be one of the most urgent issues facing the next government, ratings agency Fitch said last week.
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