China has rolled over a $2 billion loan to Pakistan, providing crucial financial relief as the country grapples with ongoing economic challenges. The development was confirmed on Saturday by Khurram Schehzad, an adviser to Pakistan’s finance minister.

The loan extension comes as Pakistan works to stabilize its economy following a $7 billion bailout from the International Monetary Fund (IMF) in September 2024. The first installment of the bailout is currently under review, and a successful assessment could unlock an additional $1 billion in financial support.

Securing external financing has been a key requirement for Pakistan to access IMF funding, as the country faces massive debt obligations in the 2025 fiscal year.

Pakistan owes over $22 billion in external repayments
Nearly $13 billion of this amount consists of bilateral deposits, according to Fitch Ratings

With mounting financial pressures, Pakistan continues to seek international aid to manage its economic recovery and meet its debt commitments. The Chinese loan extension serves as a critical buffer as the country navigates its fiscal challenges while awaiting further IMF disbursements.