China aids Pakistan with $3.4 bn loan rollover
China just extended a $3.4 billion loan rollover to Pakistan, giving the country's foreign exchange reserves a much-needed boost before an important IMF deadline.
The package includes a rollover of $2.1 billion that has been in reserves for the past three years and refinancing of a $1.3 billion loan that was paid back earlier.
Pakistan aims to meet IMF's reserve target
Pakistan is racing to hit the IMF's $14 billion reserve target by June 30, which is key for keeping its current bailout program going.
Along with China's support, another $1 billion from Middle Eastern banks and $500 million in aid are on the way to help meet this goal.
Funding provides Pakistan breathing room amid economic reforms
This funding gives Pakistan some breathing room as it works through tough economic reforms, which officials say are slowly stabilizing things despite ongoing challenges like currency drops and debt payments.
Pakistani central bank had about $11.7 billion in reserves
As of mid-June, Pakistan's central bank had about $11.7 billion in reserves, with total liquid reserves (including commercial banks) at $17.1 billion.
The Chinese rollover helps shore up these funds so Pakistan can keep up with debt payments and manage its finances better during a tricky period.