China has extended the repayment period of a $2 billion loan to Pakistan by one year, providing crucial financial relief to the country, the finance ministry confirmed on Saturday.
The loan, originally due on March 24, has been deferred to support Pakistan’s economic stability and recovery efforts, the ministry said in a statement.
“This extension will help Pakistan maintain its foreign exchange reserves and strengthen financial stability,” the statement added.
China remains a key economic partner for Pakistan, offering financial assistance and investments, particularly under the China-Pakistan Economic Corridor (CPEC) initiative. The loan deferment comes as Pakistan grapples with economic challenges, including a balance of payments crisis and ongoing negotiations with international lenders for further financial support.
Meanwhile, Pakistan and the International Monetary Fund (IMF) have begun discussions for the first review of the $7 billion Extended Fund Facility (EFF) secured last year.
Finance Minister Muhammad Aurangzeb met with an IMF delegation, led by Nathan Porter, in Islamabad to discuss Pakistan’s economic situation. During the meeting, Pakistan reaffirmed its commitment to fiscal discipline and economic reforms as it seeks to fulfil the conditions of the IMF loan program.
