China has provided major financial support to Pakistan by rolling over $3.4 billion in loans, giving a much-needed boost to the country’s foreign exchange reserves. A finance ministry source shared that this includes $2.1 billion kept in the central bank for three more years, along with the refinancing of a $1.3 billion commercial loan that Pakistan had already paid back earlier.
Besides China’s help, Pakistan also received $1 billion from commercial banks in the Middle East and another $500 million from international financial institutions. These funds have played a key role in helping Pakistan meet a major requirement of IMF maintaining more than $14 billion in foreign reserves by June 30, the end of the financial year.
Officials believe that these positive developments are a result of ongoing economic reforms carried out under the $7 billion IMF bailout program. They say that these changes have not only helped to stabilize the economy but have also improved the country’s image in the eyes of international partners.
China’s strong and timely support, in particular, reflects the deep strategic relationship between the two countries. It has also reassured investors and donors about Pakistan’s ability to manage its financial responsibilities.
With improved foreign reserves and growing global support, Pakistan is on a better path toward maintaining economic stability and gaining the trust of international lenders.
