ISLAMABAD: Pakistan has formally sought an extension of the maturity date for a $2 billion loan from China, as the existing term is set to expire on March 23.

Caretaker Prime Minister Anwaar-ul-Haq Kakar has written a letter to his Chinese counterpart, requesting the rollover of the loan for an additional year.

Sources indicate that Pakistan’s finance ministry is actively engaged with Chinese officials to ensure a timely extension of the loan, and there is confidence in Islamabad that China will approve the request.

In his letter, Kakar expressed appreciation for the Chinese government’s supportive measures in helping Pakistan alleviate its foreign payment obligations. It is important to note that Pakistan initially secured a $4 billion deposit from China to address its balance of payments challenges.

Additionally, on January 17, the United Arab Emirates (UAE) granted a one-year extension for a $2 billion loan to Pakistan. This decision followed a formal request from Islamabad, with Prime Minister Kakar sending a letter to UAE President Sheikh Mohammed bin Zayed al-Nahyan seeking the loan rollover.