China has rolled over a total of US$3.4 billion in commercial loans to Pakistan, significantly reinforcing Islamabad’s foreign exchange reserves and helping meet International Monetary Fund (IMF) requirements, according to a source within Pakistan’s Ministry of Finance.
The financing package includes the continuation of US$2.1 billion that has remained in Pakistan’s central bank reserves for the past three years, as well as the refinancing of a separate US$1.3 billion loan previously repaid by Islamabad two months ago.
In addition to the Chinese support, Pakistan has secured US$1 billion from Middle Eastern commercial banks and a further US$500 million through multilateral financing channels.
“These inflows have brought our reserves in line with the IMF target,” the official stated, confirming that the funds have pushed Pakistan’s foreign exchange reserves to US$14 billion, in line with the IMF’s year-end requirement.
The financial assistance comes as Pakistan implements structural reforms under a US$7 billion IMF bailout programme. Officials assert that the economy has shown signs of stabilisation, underpinned by international financing and adherence to reform conditions.
-Reuters
