ISLAMABAD: China has rolled over \$3.4 billion in loans to Pakistan, according to two senior government officials, providing a critical boost to the country’s foreign exchange reserves in line with International Monetary Fund (IMF) requirements.
The support includes a \$2.1 billion deposit that has remained with the State Bank of Pakistan for the past three years and a \$1.3 billion commercial loan that was recently repaid and has now been refinanced.
The officials, speaking on condition of anonymity ahead of a formal announcement, also confirmed the receipt of an additional \$1 billion from Middle Eastern commercial banks and \$500 million from multilateral institutions.
“This brings our reserves in line with the IMF target,” one of the officials stated, referring to the IMF’s condition that Pakistan maintain reserves above \$14 billion by June 30, the end of the fiscal year.
Pakistani authorities have reiterated that the economy is showing signs of stabilisation under ongoing structural reforms linked to a \$7 billion IMF bailout package.
