China rolls over $2 billion loan, easing pressures on Pakistan

China’s Diplomatic Gesture Strengthens Bilateral Ties and Boosts Pakistan’s Economic Resilience.

China rolls over $2 billion loan, easing pressures on Pakistan. In a gesture of diplomatic goodwill, China has agreed to extend the term of a $2 billion loan that was set to mature in March, providing significant relief for Pakistan amidst challenging economic times.

Pakistan, grappling with a dwindling reserve reported at $8.01 billion last week, faced the prospect of exacerbated fiscal strain with the maturation of the loan, originally secured with a 7.1 per cent interest rate.

The decision to extend the loan timeline emerges as a pivotal lifeline for Pakistan’s economic stability, aligning with the anticipated significant fund inflows of $14 billion in fiscal year 2024, as projected in September 2023 by Bloomberg.

This timely extension not only alleviates immediate pressure on Pakistan’s reserves but also supports its broader strategy to enhance financial resilience and ensure a steady influx of capital.

China’s diplomatic move underscores the amicable ties between the two nations and fortifies Pakistan’s ongoing efforts to navigate economic challenges and bolster its financial standing on the global stage.

PSX continues bullish trend, closing with 0.77% increase

In a notable upswing, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index concluded Wednesday’s trading session at 63,703.45, marking an increase of 484.35 points, or 0.77 per cent.

Investors are actively monitoring the upcoming release of February’s inflation and trade data scheduled for Friday, anticipating a positive trajectory.