China Extends $2 Billion Loan to Pakistan for One Year

China has extended the repayment period of a $2 billion loan to Pakistan for another year, shifting the deadline from March 24. This extension is vital for Pakistan as it faces significant financial challenges, allowing the country to bolster its foreign exchange reserves and stabilize its economy. The loan rollover comes as Pakistan is implementing macroeconomic reforms and is in ongoing discussions with the International Monetary Fund regarding a $7 billion bailout package. China's support, particularly through initiatives like the China-Pakistan Economic Corridor, underscores its role as a crucial economic ally for Pakistan. The loan deferment is expected to ease immediate repayment pressures, enabling the government to focus on economic recovery efforts. This is the second consecutive year that China has rolled over this loan, highlighting its ongoing commitment to Pakistan during its economic difficulties.