Pakistan seeks another $2 billion loan from friendly country
Pakistan has officially asked China to extend the repayment deadline for a $2 billion loan, originally due by March 23. Caretaker Prime Minister Anwaarul Haq Kakar penned a letter to Chinese Prime Minister Li Qiang, seeking a one-year rollover for the loan.
The finance ministry is reportedly in communication with Chinese authorities, and there are indications that the loan may indeed be extended for another year.
Sources reveal that China had previously injected around $4 billion into Pakistan to bolster the country's foreign exchange reserves.
This financial support aimed to maintain a specified level of reserves, thereby preventing defaults on external payments, including hefty interest payments on loans borrowed from international lenders and countries.