China extends $2B loan to Pakistan for another year

China has extended a $2 billion loan to Pakistan for an additional year, as confirmed by caretaker Finance Minister Shamshad Akhtar in response to Reuters.

Publication: 29.02.2024 - 10:59
China extends $2B loan to Pakistan for another year
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Initially due in March, this rollover is part of efforts to aid Pakistan's economy, currently facing a financial crisis. Geo News, which first broke the story, reported that Beijing had informed Islamabad of the decision, providing a temporary relief for Pakistan's financial challenges.

Last summer, Pakistan secured a $3 billion standby arrangement from the International Monetary Fund (IMF) in a bid to stabilize its economy. However, the country's precarious financial situation continues to demand significant external financing, a priority for the incoming government according to Fitch Ratings.