Pakistan’s finance minister on Thursday said China has rolled over a $2.4 billion loan for the cash-strapped Islamic nation for two years, a move aimed at helping the country overcome one of its worst economic crises.
The latest extension in loan maturities by Beijing was a boost to Pakistan’s fragile foreign exchange reserves, which are still only enough to pay the import bill for a period of two months.
In a post on the X platform, formerly known as Twitter, Ishaq Dar said the Chinese EXIM Bank rolled over for two years the “principal amounts” of the $2.4 billion loan, which Islamabad was to have paid back in 2024 and 25.
However, he said Pakistan would now only make interest payments in both years. China is a longtime friend of Pakistan and it has played a key role in helping Pakistan avoid a default this year, though there has been concern in the country about how Islamabad would repay the growing Chinese loans.