### China Extends Financial Lifeline to Pakistan with $3.4 Billion Loan Rollovers In a significant move to stabilize Pakistan's economy, China has rolled over $3.4 billion in loans to Islamabad. This financial assistance is crucial as Pakistan grapples with low foreign exchange reserves, which are essential for meeting International Monetary Fund (IMF) requirements. The rollover includes $2.1 billion that has been held in Pakistan's central bank for three years and an additional $1.3 billion from a commercial loan that was recently refinanced. This support is part of a broader strategy to enhance Pakistan's financial stability amid ongoing economic challenges and negotiations for further IMF assistance [https://www.firstpost.com/world/china-rolls-over-3-4-billion-in-loans-to-pakistan-helping-boost-reserves-13901563.html][https://www.marketscreener.com/news/latest/China-rolls-over-3-4-billion-of-commercial-loans-to-Pakistan-says-source-50360232]. ### Breakdown of the Financial Support and Its Implications 1. **Loan Details**: - China rolled over **$3.4 billion** in loans, which includes: - **$2.1 billion** held in reserves for three years. - **$1.3 billion** from a commercial loan that was repaid two months ago and now refinanced. - This rollover is critical for Pakistan to meet the **$14 billion** foreign reserves target set by the IMF [https://www.freemalaysiatoday.com/category/business/2025/06/29/china-rolls-over-us3-4bil-of-commercial-loans-to-pakistan][https://www.moneycontrol.com/world/china-rolls-over-3-4-billion-of-commercial-loans-to-pakistan-report-article-13200074.html]. 2. **Economic Context**: - Pakistan's foreign exchange reserves were at a precarious level, necessitating this financial support to avoid an economic crisis. - The rollover is part of a larger financial strategy that includes additional loans from Middle Eastern banks and multilateral financing, which collectively aim to bolster Pakistan's liquidity [https://www.republicworld.com/business/china-throws-pakistan-a-34-billion-lifeline-to-prevent-economic-meltdown][https://24newshd.tv/29-Jun-2025/china-rolls-over-dollar-3-4b-loan-to-pakistan-boosting-foreign-reserves-to-dollar-14b]. 3. **Future Prospects**: - The financial assistance from China is expected to facilitate ongoing negotiations with the IMF for a new long-term loan program, following the recent $3 billion Stand-By Arrangement [https://www.devdiscourse.com/article/law-order/3486263-china-boosts-pakistans-reserves-with-34-billion-loan-rollovers][https://en.dailypakistan.com.pk/29-Jun-2025/china-rolls-over-3-4bn-in-loans-as-pakistans-reserves-hit-14bn]. ### Summary of Findings **Key Conclusions**: 1. **Financial Stability**: The rollover of $3.4 billion in loans from China is a critical step in stabilizing Pakistan's economy and meeting IMF requirements. 2. **Reserves Target**: This financial support has helped Pakistan achieve the necessary foreign reserves of **$14 billion**, essential for economic stability. 3. **Broader Financial Strategy**: The assistance is part of a comprehensive approach that includes additional loans from other sources, aimed at enhancing Pakistan's liquidity and facilitating future negotiations with the IMF. In conclusion, China's financial support is pivotal for Pakistan as it navigates through economic challenges and seeks to secure its financial future [https://www.moneycontrol.com/world/pakistan-signs-usd-350-million-loan-agreement-with-asian-development-bank-article-13176627.html][https://profit.pakistantoday.com.pk/2025/06/25/china-agrees-to-reschedule-1-8-billion-in-loans-to-support-pakistans-financing-needs].