China rolls over $2 billion loan to Pakistan, Financial relations between Pakistan and China greatly improved after China agreed to pay off Pakistan’s billion-dollar debt. With the massive loan first taken out at a 7.1% interest rate and expiring in March, Pakistan’s economy might be in jeopardy.
Nevertheless, Pakistan was able to obtain a prolongation through diplomatic channels and calculated discussions, which quickly lessened the financial burden. This swift action and the strength of the two nations’ bilateral ties demonstrate China’s continued support for Pakistan in the face of its economic difficulties.
Thanks to the loan extension, Pakistan’s financial officials can now make the necessary changes and are reassured that the country will withstand economic shocks. Mutual trust is bringing Pakistan and China, the world’s most powerful nation, closer and more cooperative.
