In a much-needed boost to its&nbsp;economy, cash-strapped Pakistan has secured crucial aid from its steadfast ally, China. On Thursday, Pakistan's finance minister, Ishaq Dar, announced that Beijing has agreed to roll over a significant $2.4 billion loan for a period of two years.

This move is expected to provide relief to Pakistan, which is facing an acute Balance of Payments&nbsp;crisis. Its&nbsp;current reserves barely cover two months' worth of import bills.

"The Chinese Exim Bank has rolled over principal amounts totaling $2.4 billion, which were scheduled for payment in the next two fiscal years," Dar said through the messaging platform X, formerly known as Twitter.

The finance minister further revealed that Pakistan will only be required to pay interest on these loans for the next two years. This extension comes as a welcome respite, as previously, Pakistan had&nbsp;to&nbsp;repay&nbsp;the loan amount cum interest by 2025.

Reuters quoted Prime Minister Shehbaz Sharif as saying that Pakistan’s long-term ally Beijing, which has pledged over $65 billion in infrastructure investment in Pakistan as part of the Belt and Road Initiative (BRI), has in recent months either rolled over or granted new loans worth around $5 billion to Islamabad as negotiations with the International Monetary Fund dragged on for eight months.

Furthermore,&nbsp;IMF's billion-dollar package also had a profound impact on Pakistan's foreign exchange reserves. A few weeks ago, these reserves had dwindled to $4 billion. However, following the infusion of funds through the IMF package, Pakistan's foreign reserves&nbsp;surged to $14 billion last week.

The last-ditch IMF accord, which came only with stringent fiscal discipline requirements, helped Pakistan avoid a sovereign default.

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In a much-needed boost to its economy, cash-strapped Pakistan has secured crucial aid from its steadfast ally, China. On Thursday, Pakistan's finance minister, Ishaq Dar, announced that Beijing has agreed to roll over a significant $2.

In a much-needed boost to its economy, cash-strapped Pakistan has secured crucial aid from its steadfast ally, China. On Thursday, Pakistan's finance minister, Ishaq Dar, announced that Beijing has agreed to roll over a significant $2.4 billion loan for a period of two years. This move is expected to provide relief to Pakistan, which is facing an acute Balance of Payments crisis. Its current reserves barely cover two months' worth of import bills. "The Chinese Exim Bank has rolled over principal amounts totaling $2.4 billion, which were scheduled for payment in the next two fiscal years," Dar said through the messaging platform X, formerly known as Twitter. The finance minister further revealed that Pakistan will only be required to pay interest on these loans for the next two years. This extension comes as a welcome respite, as previously, Pakistan had to repay the loan amount cum interest by 2025. Reuters quoted Prime Minister Shehbaz Sharif as saying that Pakistan’s long-term ally Beijing, which has pledged over $65 billion in infrastructure investment in Pakistan as part of the Belt and Road Initiative (BRI), has in recent months either rolled over or granted new loans worth around $5 billion to Islamabad as negotiations with the International Monetary Fund dragged on for eight months. Furthermore, IMF's billion-dollar package also had a profound impact on Pakistan's foreign exchange reserves. A few weeks ago, these reserves had dwindled to $4 billion. However, following the infusion of funds through the IMF package, Pakistan's foreign reserves surged to $14 billion last week. The last-ditch IMF accord, which came only with stringent fiscal discipline requirements, helped Pakistan avoid a sovereign default. WATCH WION LIVE HERE

China rolls over $2.4 billion loan for 2 years: Pakistan finance minister

Sri Lanka is soon going to strike a loan deal with the International Monetary Fund. According to the media reports, Sri Lanka has reached a preliminary agreement on an emergency loan with the IMF and a formal announcement is likely to be made on Thursday.

Sri Lanka locks preliminary loan deal with IMF: Reports

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