China Boosts Pakistan's Reserves with $3.4 Billion Loan Rollovers

In a significant financial development, China has rolled over $3.4 billion in loans to Islamabad, pushing Pakistan's foreign exchange reserves to a healthy $14 billion. This move is part of a larger strategy involving commercial and multilateral lending to stabilize the nation's economy, according to a source in the finance ministry.

Part of the rolled-over loans includes $2.1 billion that have been in Pakistan's central bank reserves for the past three years, coupled with the refinancing of a $1.3 billion commercial loan previously repaid by Islamabad. An additional financial boost came from $1 billion secured from Middle Eastern commercial banks and $500 million from multilateral financing.

These financial maneuvers are in line with the requirements set by the International Monetary Fund, demanding Pakistan's reserves exceed $14 billion by the end of the fiscal year on June 30. Pakistani officials assert that these efforts, supported by a $7 billion IMF bailout, are key to stabilizing the country's economy through ongoing reforms.