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Reuters
Reuters
Business
By Asif Shahzad and Ariba Shahid

China rolls over $2 billion loan to Pakistan as it struggles with external liquidity

Flags of Pakistan and China are seen at the entrance of the China Pavilion, during the International Defence Exhibition and Seminar "IDEAS 2022" in Karachi, Pakistan November 16, 2022. REUTERS/Akhtar Soomro

Pakistani Finance Minister Ishaq Dar said on Friday China had rolled over a $2 billion loan that matured last week, providing relief during the South Asian nation's acute balance of payment crisis.

Locking in a rollover had been critical for Pakistan, where reserves have dipped to just four weeks' worth of imports and talks over an International Monetary Fund bailout tranche of $1.1 billion have hit a stalemate.

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