China rolls over $2 billion loan to Pakistan as it struggles with external liquidity
The HinduPakistani Finance Minister Ishaq Dar said on March 31 that 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. Longtime ally Beijing has provided the only help Islamabad has got so far, with refinancing of $1.8 billion credited last month to Pakistan's central bank. In its monthly Economic Update and Outlook, the Finance Division of the government noted that Pakistan was currently confronted with shortage in external liquidity. The report cited market frictions caused by relative demand and supply gaps of essential items, exchange rate depreciation, and the recent upward adjustment in prices of prices of fuel as reasons behind higher inflation expectations.