China has rolled over $3.4 billion in loans to Pakistan, helping meet IMF reserve targets and stabilise the economy.
China has rolled over $3.4 billion in loans to Pakistan, providing critical support to Islamabad’s foreign exchange reserves as the country meets key requirements under its ongoing $7 billion International Monetary Fund (IMF) bailout programme, senior government officials revealed on Sunday.
The financial relief includes a $2.1 billion deposit that has remained with Pakistan’s central bank for the past three years, as well as the refinancing of a $1.3 billion commercial loan that Pakistan repaid two months ago, the officials said on condition of anonymity, as they were not authorised to speak publicly ahead of an official announcement.
In addition to the Chinese support, Pakistan has secured $1 billion from Middle Eastern commercial banks and $500 million from multilateral lenders, one official confirmed. “This brings our reserves in line with the IMF target,” the official added.
The International Monetary Fund had stipulated that Pakistan’s foreign reserves must exceed $14 billion by the end of the fiscal year on June 30. The fresh inflows now ensure compliance with that benchmark, helping Islamabad strengthen its financial stability.
Pakistan’s economic outlook has shown signs of improvement in recent months, with authorities crediting ongoing structural reforms tied to the IMF agreement. The bailout programme, which was negotiated to avoid a balance of payments crisis, has been instrumental in keeping the country’s economy afloat amid persistent fiscal and external challenges.
The support from China—Pakistan’s long-standing economic partner—comes at a crucial time and reaffirms Beijing’s role in stabilising the region’s most fragile economies.
