China has rolled over $3.4 billion in loans to Pakistan, providing a major financial cushion for the country as it works to meet conditions set by the International Monetary Fund (IMF), two senior Pakistani government officials confirmed to Reuters.
The rolled-over amount includes $2.1 billion held by Pakistan’s central bank for the past three years and a refinanced $1.3 billion commercial loan that was repaid earlier this year. The move comes ahead of the close of Pakistan’s fiscal year on June 30, a deadline by which the IMF required the country’s foreign exchange reserves to exceed $14 billion.
In addition to the Chinese support, Pakistan has also received $1 billion from Middle Eastern commercial banks and $500 million through multilateral financing. One of the officials stated that these inflows have brought the country’s reserves in line with IMF targets.
The officials spoke on condition of anonymity as an official government announcement is still pending.
The Chinese loans are considered crucial to maintaining economic stability in Pakistan, which is currently implementing reforms under a $7 billion IMF bailout package. Pakistani authorities maintain that these reforms have begun to stabilize the economy and restore confidence in financial management.
The IMF’s benchmarks, including reserve accumulation and fiscal discipline, are being closely monitored as Pakistan looks to avoid a balance of payments crisis and secure further international support in the months ahead.
