China has extended a $2 billion loan to Pakistan, as confirmed by Khurram Schehzad, an adviser to the finance minister, in a text message to Reuters on Saturday.
In an effort to bolster its financial position, Pakistan is working diligently following a $7 billion bailout from the International Monetary Fund secured in September 2024. The initial installment of this loan is currently under evaluation, and if approved, Pakistan stands to gain an additional $1 billion.
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Historically, obtaining external financing has been a crucial requirement for the IMF to sanction bailout agreements for the financially challenged country.
According to Fitch, Pakistan is obligated to repay over $22 billion in external debt during the fiscal year 2025, which includes nearly $13 billion in bilateral deposits.
