Debt rollover by China gives govt breathing space

China has extended the repayment period of a $2 billion loan to Pakistan by one year, offering much-needed financial relief and helping stabilise the country’s foreign exchange reserves. A senior official at the Ministry of Finance confirmed the development on Saturday, calling it a key financial support measure from China. The $2bn loan, originally due for repayment on March 24, has now been deferred as part of China’s commitment to Pakistan’s economic stability and recovery efforts. “This extension provides Pakistan with a financial cushion at a time when repayment of $2bn would have been a serious challenge,” the finance ministry official told Dawn, adding that the development would also help keep the rupee stable by maintaining foreign exchange reserves.