ISLAMABAD: China has once again extended financial relief to Pakistan by extending the repayment period of a $2 billion loan to Pakistan by one year.
It emerged lately that China has agreed to delay the loan repayment to provide stability to Pakistan’s economic stability which was earlier scheduled for March 24.
This extension will help Pakistan maintain its foreign exchange reserves and strengthen financial stability,” the statement noted.
Over the years, China has been a reliant partner of Pakistan on the economic and time and again, has come to the rescue of Pakistan’s financial conundrum.
This time the decision of China has more value, it comes at a time when Pakistan is grappling with economic challenges including balance of payment crisis. Also, the country is also in talks with multilateral lenders for any financial assistance.
Sources privy to the development noted that the deferment would reduce the pressure of immediate payment because the focus of the government, at first, is to bring stability to the economy.
