• China extends Pakistan’s loan repayment deadline
• Boosts investor confidence in Pakistan
• IMF loan review underway
ISLAMABAD (The Thursday Times) — China extended Pakistan’s deadline for repaying a significant two-billion-dollar loan by one year, aiming to stabilise Pakistan’s struggling economy and strengthen investor confidence.
This extension provides relief to Pakistan, allowing it more time to carry out crucial economic reforms and maintain positive relations with international financial institutions, particularly the IMF.
In recent years, China has invested extensively in Pakistan’s infrastructure and energy sectors under President Xi Jinping’s Belt and Road Initiative, significantly reshaping the country’s economy but also increasing its debt burden.
The move by China comes as Pakistan undertakes its initial evaluation of the IMF’s 7 billion dollar programme, an essential step closely monitored by global investors as a sign of economic stability and progress. The news boosted the trading value of Pakistan’s international bonds, specifically those due in 2026, and prompted positive movement in the Pakistan Stock Exchange.
Financial experts regard China’s loan extension as a critical support for Pakistan as it navigates a challenging economic period.