China has rolled over $3.4 billion in loans to support Pakistan’s economy, giving a major boost to the country’s foreign exchange reserves. A finance ministry official explained that the package includes $2.1 billion that will remain with the State Bank of Pakistan for the next three years, and the refinancing of a $1.3 billion commercial loan that had already been repaid earlier.
In addition to China’s assistance, Pakistan has received $1 billion from Middle Eastern commercial banks and another $500 million from global financial institutions. These funds have helped the country meet the International Monetary Fund’s (IMF) requirement to maintain over $14 billion in reserves by June 30, which marks the end of the fiscal year.
Government officials credit the success to the ongoing economic reforms introduced under the $7 billion IMF loan program. These reforms have helped stabilize Pakistan’s financial position and increase trust among international partners.
China’s continued financial support highlights the strong partnership between the two nations and sends a positive message to global markets and investors. It shows confidence in Pakistan’s economic roadmap and efforts to maintain fiscal discipline.
With rising foreign inflows and improved reserves, Pakistan is in a better position to manage its economic challenges and continue working toward long-term stability.
