• Extension of $2bn loan deadline comes amid Pakistan-IMF talks
• Govt official says move to ‘strengthen govt’s position’ during negotiations
• Development to also help maintain forex reserves, keep rupee stable

ISLAMABAD: China has extended the repayment period of a $2 billion loan to Pakistan by one year, offering much-needed financial relief and helping stabilise the country’s foreign exchange reserves.

A senior official at the Ministry of Finance confirmed the development on Saturday, calling it a key financial support measure from China.

The $2bn loan, originally due for repayment on March 24, has now been deferred as part of China’s commitment to Pakistan’s economic stability and recovery efforts.

“This extension provides Pakistan with a financial cushion at a time when repayment of $2bn would have been a serious challenge,” the finance ministry official told Dawn, adding that the development would also help keep the rupee stable by maintaining foreign exchange reserves.

Khurram Schehzad, the adviser to the finance minister, also confirmed the rollover........

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