China extends $2B loan to Pakistan for another year
China has extended a $2 billion loan to Pakistan for an additional year, as confirmed by caretaker Finance Minister Shamshad Akhtar in response to Reuters.
cumhuriyet.com.trInitially due in March, this rollover is part of efforts to aid Pakistan's economy, currently facing a financial crisis. Geo News, which first broke the story, reported that Beijing had informed Islamabad of the decision, providing a temporary relief for Pakistan's financial challenges.
Last summer, Pakistan secured a $3 billion standby arrangement from the International Monetary Fund (IMF) in a bid to stabilize its economy. However, the country's precarious financial situation continues to demand significant external financing, a priority for the incoming government according to Fitch Ratings.