China Rolls Over $3.4 Billion Loans to Support Pakistan’s Economy

In a significant development for Pakistan’s struggling economy, China has rolled over more than $3.4 billion in commercial loans, providing much-needed support for the country’s foreign exchange reserves and economic stability.

According to news agency Reuters, China has rolled over $2.1 billion previously deposited with the State Bank of Pakistan for the past three years. Additionally, a further $1.3 billion in commercial loans has also been rolled over by China.

In parallel to this, Pakistan has received $1 billion from a commercial bank in the Middle East, while $500 million has also been secured from multilateral sources.

These financial inflows are expected to push Pakistan’s total foreign exchange reserves to $14 billion, a significant boost at a time when the country is navigating economic pressure and external financing challenges.

This support follows the $7 billion IMF bailout package, which has already provided a degree of stabilisation to the Pakistani economy.