Islamabad: China has agreed to provide Pakistan with further extension in loan repayment. Pakistan has the possibility of receiving an additional loan of $2.3 billion from China.
According to sources, China has confirmed the refinancing of $1.3 billion in trade loans and the repayment of $1 billion in loans from the Chinese government.
As per the Ministry of Finance, Pakistan has completed all arrangements for debt payments by June, eliminating the risk of the country defaulting.
Sources further state that Pakistan also has the possibility of receiving assistance up to $400 million from some countries for flood relief efforts.
Pakistan is required to repay a loan of $3.7 billion by the end of next month.
China has assured its support to Pakistan in fulfilling two important debt repayments due in June. However, after the repayment of loans, China will provide further financial assistance to Pakistan.
