In a significant financial boost, China has rolled over $3.4 billion in loans to Pakistan, according to two senior government officials, a move that strengthens Islamabad’s foreign exchange reserves just as the country meets key requirements set by the International Monetary Fund (IMF).
The package includes a $2.1 billion rollover of funds already held in Pakistan’s central bank reserves for the past three years, along with the refinancing of a $1.3 billion commercial loan that Islamabad had repaid two months ago. The officials, who spoke to Reuters on condition of anonymity, said the formal announcement would be made soon.
In addition to Chinese assistance, Pakistan has secured $1 billion from Middle Eastern commercial banks and $500 million through multilateral financing, further stabilizing the reserves.
“These inflows bring our reserves in line with the IMF target,” one of the officials confirmed, referring to the IMF’s requirement for Pakistan to maintain over $14 billion in reserves by the end of the fiscal year on June 30.
The development comes amid continued economic reforms under Pakistan’s $7 billion IMF bailout program, which government officials say has helped stabilize the country’s fragile economy. The Chinese loan support in particular is seen as a vital lifeline, preventing reserve depletion and building confidence ahead of future financial negotiations.
