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In a major financial lifeline, China has rolled over $3.4 billion in commercial loans to Pakistan, helping the country meet a key foreign reserves target set by the International Monetary Fund (IMF), a senior finance ministry source confirmed Sunday.
The support includes the rollover of $2.1 billion that has remained with Pakistan’s central bank for three years, along with the refinancing of a $1.3 billion commercial loan that Islamabad repaid two months ago, the source said.
The latest Chinese support is part of a broader inflow that includes $1 billion from Middle Eastern commercial banks and $500 million in multilateral financing, pushing Pakistan’s total foreign exchange reserves to $14 billion—the IMF-mandated minimum for the fiscal year ending June 30.
“This brings our reserves in line with the IMF target,” the official stated.
The funds arrive as Pakistan continues to implement reforms under its $7 billion IMF bailout programme, with authorities claiming the economy is showing signs of stabilisation after months of fiscal pressure and balance-of-payments stress.
China’s continued financial backing remains crucial to Pakistan’s economic resilience, especially amid tight liquidity, rising debt obligations, and limited market access.
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