Economy Update – Follow-up
Khuram Shazad, the Finance Minister of Pakistan, announced on Saturday that China has renewed a loan worth one billion dollars to Pakistan.
This development comes as Pakistan strives to strengthen its financial policies following the approval of a seven billion dollar rescue plan from the International Monetary Fund (IMF) in September 2024. The initial tranche of this loan is under review, and upon approval, Pakistan could secure an additional billion dollars.
Historically, the equalization of external financing has been a pivotal condition for the IMF to agree to financial agreements aimed at alleviating Pakistan’s economic challenges.
According to Fitch Ratings, Pakistan faces external debt repayments exceeding 22 billion dollars in the fiscal year 2025, with approximately 13 billion dollars due in deposits.
For more updates, subscribe to our channel on Tilekram