Islamabad: Pakistan has successfully repaid a $1 billion loan to China, as part of its ongoing efforts to manage external debt and stabilize its fragile economy. The repayment was made on schedule, alleviating concerns about the country’s foreign exchange reserves and commitment to international obligations.
The loan was part of a financial assistance package provided by China to support Pakistan’s economic needs. The repayment comes at a time when Pakistan is facing significant fiscal challenges, including mounting debt repayments, a widening trade deficit, and inflationary pressures.
Pakistan’s finance ministry confirmed the payment, emphasizing that the government remains committed to meeting its external debt obligations. The State Bank of Pakistan (SBP) had already taken measures to ensure that foreign reserves remained stable despite such repayments.
China remains one of Pakistan’s key financial partners, with both countries engaged in multiple economic projects under the China-Pakistan Economic Corridor (CPEC). Analysts believe that further financial assistance from Beijing may be sought to manage Pakistan’s balance of payments in the coming months.
With the International Monetary Fund (IMF) and other financial institutions keeping a close watch on Pakistan’s economic trajectory, the timely repayment of loans is seen as a crucial step in maintaining financial credibility and attracting further investment.
