China Rolls Over $2 Billion Loan to Pakistan
China has agreed to roll over a $2 billion loan to Pakistan, as confirmed by Khurram Schehzad, an adviser to Pakistan's finance minister. This financial maneuver comes as Pakistan seeks to stabilize its economy after obtaining a $7 billion bailout from the International Monetary Fund (IMF) in September 2024. With over $22 billion in external debt due in fiscal year 2025, including substantial bilateral deposits, securing this loan is crucial for the country's financial recovery.
- China's continued financial support highlights the strategic partnership between the two nations, particularly as Pakistan navigates its pressing economic challenges.
- What implications does this loan rollover have for Pakistan's long-term economic sovereignty and its relationship with international financial institutions?