In a move that will help Islamabad bulk-up its foreign exchange reserves, as per the International Monetary Fund’s (IMF) requirement, China rolled over $3.4 billion in loans to Pakistan, said senior Pakistan government officials on Sunday.
Of this, $2.1 billion had been in Pakistan’s central bank reserves for the last three years, while another $1.3 billion commercial loan was refinanced by China, which Islamabad had paid back two months ago.
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This amount in commercial loans adds to the $1 billion that Pakistan has received from Middle Eastern commercial banks, and another $500 million from multilateral financing.
"This brings our reserves in line with the IMF target," said the source, who asked not to be named as he was not authorised to speak on the matter ahead of an official announcement.
After nearing bankruptcy in 2023, the loans, including the $7 billion bailout by IMF, have been critical to stabilising Pakistan’s economy amid its ongoing reforms.
The IMF required Pakistan to have over $14 billion in foreign reserves at the end of the current fiscal year on June 30.
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