The caretaker finance minister of Pakistan, Shamshad Akhtar confirmed today that China has agreed to extend a 2 billion dollar loan to Pakistan, which was due in March, for another year. Beijing has formally communicated this decision to Islamabad. This extension comes at a crucial time for Pakistan's economy, which has been grappling with financial challenges.
Last summer,
Pakistan secured a 3 billion dollar standby arrangement from the International Monetary Fund (IMF) to stabilize its economy. Fitch, a rating agency, recently highlighted Pakistan's vulnerable external position and stressed the importance of securing financing from both multilateral and bilateral partners as a pressing concern for the upcoming government.