China renews Pakistan’s loan of $700 million

China renews Pakistan's loan of $700 million

A $700 million commercial loan between Pakistan and China has revived hopes for a total of $2 billion in infusions from the friendly nation. This development may temporarily stabilize Pakistan’s precariously low foreign exchange reserves until IMF funding started to trickle in.

The change occurred just days before Pakistan was supposed to repay another $300 million commercial loan from China. Officials from the Ministry of Finance and Revenue and the International Monetary Fund reportedly held a virtual conference to announce the development, according to details (IMF).

Over the weekend, Pakistan and the China Development Bank came to terms on a $700 million loan. The money is anticipated to be transferred this week, according to officials.

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