China has extended a financial boost to Pakistan by rolling over $3.4 billion in loans, according to a finance ministry source, news agency Reuters reported. This includes the continuation of a $2.1 billion deposit held with Pakistan's central bank for the past three years and the refinancing of a $1.3 billion commercial loan that was repaid earlier.
Beijing rolled over $2.1 billion, which has been in Pakistan's central bank's reserves for the last three years, and refinanced another $1.3 billion commercial loan, which Islamabad had paid back two months ago, the source said.
Another $1 billion from Middle Eastern commercial banks and $500 million from multilateral financing have also been received, he said.
"This brings our reserves in line with the IMF target," he said.
The loans, especially the Chinese ones, are critical to shoring up Pakistan's low foreign reserves, which the IMF required to be over $14 billion at the end of the current fiscal year on June 30.
Pakistani authorities say that the country's economy has stabilised through ongoing reforms under a $7 billion IMF bailout.
*With Agency Inputs
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
