Acting Finance Minister Shamshad Akhtar, in a reply to Reuters on Thursday, confirmed that China has given a loan of $ 2 billion to Pakistan.
Geo News, which was the first to report the news, citing sources in Pakistan’s Finance Ministry, said the $2 billion loan was due in March and has been extended for a year. It said Beijing had informed Islamabad about the decision.
Cash-strapped Pakistan’s economy is struggling to recover from the financial crisis and it secured an additional $3 billion from the International Monetary Fund last summer.
Rating agency Fitch last week said Pakistan’s weak external position means that securing financing from multilateral and bilateral partners will be one of the most pressing issues facing the next government.