Islamabad, Pakistan – In a significant financial relief for Pakistan, China has rolled over a $2 billion loan, providing much-needed support to the South Asian nation’s struggling economy. Pakistan’s Ministry of Finance confirmed the development on Saturday, highlighting China’s continued financial backing amid Pakistan’s ongoing economic challenges.
The loan, which was set to mature this month, has been extended under the existing terms, easing pressure on Pakistan’s foreign exchange reserves. According to official sources, the rollover comes as part of China’s commitment to helping Pakistan manage its external financing requirements and sustain economic stability.
Finance Minister Muhammad Aurangzeb acknowledged the support from Beijing, stating, “This timely assistance from China reflects the strong strategic partnership between our two nations. It will provide stability to our foreign exchange reserves and support our economic recovery efforts.”
Pakistan has been grappling with a severe financial crisis, marked by high inflation, currency depreciation, and a significant balance-of-payments deficit. The country has been seeking external financing from multiple sources, including the International Monetary Fund (IMF), bilateral partners, and commercial lenders, to meet its debt obligations and maintain macroeconomic stability.
China has remained one of Pakistan’s most reliable financial partners, regularly extending loans and refinancing debt to prevent a default scenario. The latest loan rollover is expected to bolster investor confidence and provide temporary relief as Pakistan navigates its economic recovery plan.
Experts believe that while the loan extension offers short-term stability, Pakistan must undertake structural economic reforms to reduce its dependency on external debt. “Pakistan needs to focus on increasing exports, improving tax collection, and attracting foreign direct investment to build a sustainable economic future,” said economist Dr. Ashfaq Hassan.
With general elections concluded and a new government in place, economic recovery remains a top priority for Pakistan’s leadership. The continuation of Chinese financial assistance will likely play a crucial role in stabilizing the country’s economy in the coming months.
As the situation develops, further discussions between Pakistan and China on future financial cooperation are expected. Meanwhile, officials from both countries reaffirmed their commitment to strengthening economic ties through strategic collaborations and investment initiatives under the China-Pakistan Economic Corridor (CPEC).