China rolls over $4.3 billion loans to Pakistan, say sources
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Loans, especially those from China, are critical to shoring up Pakistan’s low foreign reserves.
PHOTO: REUTERS
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KARACHI, Pakistan – China has rolled over US$3.4 billion (S$4.3 billion) in loans to Pakistan, two senior Pakistani government officials told Reuters on June 29, in a move that will help boost Islamabad’s foreign exchange reserves, a requirement of the International Monetary Fund (IMF).
Beijing rolled over US$2.1 billion, which has been in Pakistan’s central bank’s reserves for the last three years, and refinanced another US$1.3 billion commercial loan, which Islamabad had paid back two months ago, the sources said.
The officials asked not to be named, as they were not authorised to discuss the matter publicly ahead of an official announcement.
Another US$1 billion from Middle Eastern commercial banks and US$500 million from multilateral financing have also been received, one of the officials said.
“This brings our reserves in line with the IMF target,” he said.
The loans, especially those from China, are critical to shoring up Pakistan’s low foreign reserves, which the IMF required to be more than US$14 billion at the end of the current fiscal year on June 30.
Pakistani authorities say the country’s economy has stabilised through ongoing reforms under a US$7 billion IMF bailout
