China's Financial Lifeline: $3.4 Billion Loan Roll-Over to Pakistan

In a move to support Pakistan's economic stability, China has rolled over $3.4 billion in loans, according to Pakistani government sources. This financial maneuver aims to bolster Islamabad's foreign reserves, aligning with the International Monetary Fund's stipulations.

The Chinese aid package consists of $2.1 billion that has been part of Pakistan's central bank reserves for three years, along with a refinanced $1.3 billion commercial loan that was previously repaid. The source of this information, although reliable, wishes to remain anonymous pending an official statement.

In addition to Chinese support, Pakistan received $1 billion from Middle Eastern commercial banks and $500 million from multilateral funding, ensuring reserves meet the IMF's $14 billion requirement by June 30. This is a crucial step in the nation's ongoing economic reforms under a $7 billion IMF bailout plan.

(With inputs from agencies.)