Archive · 29 May 2025
China to Provide $3.7 Billion Loan to Pakistan
China is going to give Pakistan a loan of $3.7 billion, and it's going to happen before the end of June.
This loan will be in Chinese money, not US dollars.
The goal is to help Pakistan keep a good amount of money in its reserves.
It is like China is helping Pakistan out financially.
This will help Pakistan's economy by maintaining their reserves.
This lending strategy is different from the past, where the loans were also provided in US dollars.
The central bank's reserves may now increase to $12.7 billion.
China has assured Pakistan of re-lending $3.7 billion in commercial loans.
The loans are denominated in Chinese currency.
The lending is expected to be completed before the end of June.
This move aims to maintain Pakistan's foreign exchange reserves in double digits.
China decided not to give loans in US currency to decouple the economy from the dollar.
- Who
- China and Pakistan
- What
- China assured Pakistan of re-lending $3.7 billion in commercial loans
- When
- Before June end
- Where
- Not specified in the article
- Why
- To help keep the foreign exchange reserves in double digits.
- Loan Amount
- $3.7 billion
- Currency
- Chinese currency
- Deadline
- Before June end
- Purpose
- Maintain foreign exchange reserves
- Previous Reserve
- $11.4 billion (after IMF injection)
- Possible Future Reserve
- $12.7 billion