China has extended the repayment period of Pakistan’s $2 billion loan by one year, the Ministry of Finance confirmed on Saturday.
According to the ministry, the loan was originally due on March 24, but China has agreed to push back the deadline, giving Pakistan much-needed financial relief.
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The extension comes at a time when Pakistan is facing economic difficulties, including pressure on its foreign exchange reserves.
Currently, around 92% of Pakistan’s external debt comes from three major sources: multilateral and bilateral creditors, as well as international bonds. Among bilateral lenders, China remains Pakistan’s largest creditor in terms of total external debt and liabilities.
Meanwhile, Pakistan’s government is in talks with the International Monetary Fund (IMF) for a fresh loan tranche. A team from the IMF is currently in Pakistan for negotiations.
