ISLAMABAD – According to reports from the Finance Ministry, China has extended a loan of $3.4 billion to Pakistan. This move by China, along with several other means of recent inflows from other sources, has added to the country’s foreign exchange reserve of $14 billion.
Moreover, Beijing extended Pakistan’s loan of $2.1 billion, which had been deposited in Pakistan’s central bank for the last three years, and further refinanced an additional $1.3 billion, a loan which Islamabad had repaid two months ago. A Finance Ministry official confirmed that Pakistan has received loans from Middle Eastern commercial banks and multilateral financing channels amounting $1.5 billion.
The official further stated that all the inflows from all different sources have brought Pakistan’s reserves on par with the level required by the IMF. Chinese funding is essential for Pakistan to meet the IMF’s conditions for its $7 billion loan program, which requires reserves to exceed $14 billion by the end of the fiscal year 2024-25 on June 30.
Pakistan’s economy also sings of improvement after steps were taken and reforms were introduced to stabilize the economy as part of the IMF’s agreement.
