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Chinese bank rolls over $2.4 billion loan to boost Pakistan’s economy

Chinese President Xi Jinping waves to deputies at the 13th National People's Congress in Beijing on Tuesday, March 20, 2018. (Lan Hongguang/Xinhua/Sipa USA/TNS)

This article was originally published by Radio Free Europe/Radio Liberty and is reprinted with permission.

China’s Exim Bank has rolled over a $2.4 billion loan to Pakistan, an official said on July 27, in a boost to the country’s economy, days after the International Monetary Fund (IMF) approved a bailout package.

The bank “rolled over for 2 years” the principal amounts of the loans, “which are due in next 2 fiscal years,” Finance Minister Ishaq Dar announced on social media, adding that “Pakistan will make interest payments only in both years.”

The economy of the South Asian nuclear power was pulled back from the brink amid fears of a default this month when the IMF approved a short-term $3 billion bailout package.

Political allies Saudi Arabia and the United Arab Emirates have also announced $3 billion to boost Pakistan’s dwindling reserves.