In a move to alleviate its economic challenges, Pakistan is on the verge of securing a $2 billion loan rollover from China, marking another chapter in the economic cooperation between the two countries. The loan, initially set to mature on March 23, 2024, is expected to be rolled over for an additional one year.
Prime Minister Anwarul Haq Kakar penned a letter to China’s Premier Li Keqiang formally requesting the extension of the $2 billion loan’s maturity. This diplomatic initiative reflects the deepening financial ties between Pakistan and China, especially in times when economic stability is crucial for the South Asian nation.
The deposit, scheduled to mature soon, is under active consideration for rollover by the respective authorities of Pakistan’s Treasury and Chinese officials. The move is anticipated to offer Pakistan much-needed breathing space, considering the current economic challenges.
Acknowledging the financial cooperation, the Treasury department expressed gratitude on behalf of the Pakistani government for China’s continuous support. The strategic partnership between the two countries has not only been diplomatic but has also played a crucial role in navigating economic uncertainties.
Prime Minister Anwarul Haq Kakar highlighted in the letter that China’s support has been instrumental, particularly in addressing Pakistan’s economic difficulties amid challenging global circumstances. The loan rollover is expected to contribute significantly to mitigating external payment pressures on Pakistan.
Sources reveal that the overall financial assistance from China stands at a staggering $4 billion, showcasing the robust economic collaboration between the two nations. This support comes at a time when Pakistan is grappling with external debt obligations, and the financial assistance is instrumental in easing the burden.
The extended loan maturity aligns with the deep-rooted economic and strategic partnership between Pakistan and China. It not only reflects China’s confidence in Pakistan’s economic reforms but also showcases a commitment to fostering a stable economic environment in the region.
In conclusion, the loan rollover signifies the resilience of Pakistan’s economic ties with China, providing a valuable lifeline during challenging times. As both nations continue to strengthen their collaboration, the financial support is anticipated to play a crucial role in stabilizing Pakistan’s economic landscape.
