Islamabad, March 8, 2025: In a significant relief for Pakistan’s economy, China has extended the repayment period of a $2 billion loan by another year, easing immediate financial pressures and supporting the country’s economic recovery efforts.
Originally due for repayment on March 24, the loan has now been rolled over, providing Pakistan with critical breathing room as it navigates economic challenges. The Ministry of Finance confirmed the extension, stating that China’s decision will help stabilize foreign exchange reserves and sustain economic recovery initiatives.
China remains a key economic partner for Pakistan, contributing to various financial and infrastructure projects, including those under the China-Pakistan Economic Corridor (CPEC).
Meanwhile, Pakistan’s total foreign exchange reserves declined by $51.9 million over the past week, bringing the total to $15.87 billion, according to the latest figures. Despite the overall drop, the State Bank of Pakistan (SBP) recorded an increase of $27.1 million in its reserves, raising them to $11.2 billion. However, commercial bank reserves saw a sharp decline, with deposits falling by $79 million to $4.62 billion.
