China Renews $3.4 Billion Commercial Loan for Pakistan

China has renewed a $3.4 billion US-dollar loan for Pakistan, a Pakistani Ministry of Finance official said on Sunday (June 29), according to a report by British news agency Reuters.The official stated that with Beijing’s assistance combined with recent commercial and multilateral loans, Pakistan’s foreign reserves could rise to $14 billion.He further added that the maturity of $2.1 billion, which had been with Pakistan’s central bank for the past three years, has been extended. In addition, a $1.3 billion commercial loan repaid two months ago will be reinvested.The official also mentioned that $1 billion has come from several commercial banks in the Middle East, along with $500 million from a multilateral financial aid organization.He explained that these measures will align Pakistan’s reserves with the target set by the International Monetary Fund (IMF).The Chinese loan holds particular importance for Pakistan as it seeks to shore up its depleting reserves. Under IMF’s conditions, Pakistan was obligated to maintain at least $14 billion in foreign reserves by the end of June this year.Pakistani officials have claimed that the country’s economy has stabilized through ongoing reforms under the $7 billion IMF bailout program.