BEIJING: China has agreed to roll over $3.4 billion in loans to support Pakistan’s foreign exchange reserves, which are now expected to rise to around $14 billion, according to an international news agency.
As part of this arrangement, $2 billion in maturing debt has been extended by one year. Additionally, $2.1 billion that had already been rolled over for the past three years will continue to remain with Pakistan.
The news agency, citing sources, also reported that $13 million in commercial loans repaid by Pakistan two months ago have been refinanced.
Separately, Pakistan has secured $1 billion from Middle Eastern commercial banks and another $500 million through other multilateral financing sources.
Under its agreement with the International Monetary Fund (IMF), Pakistan is required to maintain foreign exchange reserves above $14 billion by the end of the current fiscal year.
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