In a positive development for Pakistan, China’s Exim Bank has granted an extension for the repayment of a $2.1 billion loan that was due last week. This extension comes as a significant relief for Pakistan, which is currently grappling with a severe financial crisis and struggling to manage its expenses.
According to the Chinese bank’s communication to the Pakistani government, during this extended period, Pakistan won’t be required to pay any interest, and they now have two years to commence repaying the principal amount. Furthermore, the Chinese bank has expressed willingness to consider extending the repayment period until June 2025.
This isn’t the first time China has offered assistance to Pakistan regarding its debts. Prior to this, China had already rolled over a $1 billion loan, providing much-needed relief to the country during its crisis. Given Pakistan’s substantial debt burden from other countries, China’s support has played a crucial role in helping the nation navigate its financial challenges and budgetary issues.
The economic relationship and friendship between Pakistan and China have been robust. China’s consistent support has been a crucial pillar for Pakistan’s financial stability during challenging times. As Pakistan continues to face economic difficulties, the ongoing support from China and other friendly nations remains vital to strengthen the country and sustain its growth.