Islamabad, February 8, 2025: Pakistan has formally requested China to reschedule USD 3.4 billion in debt repayments as the country continues to grapple with economic challenges. The request aims to ease the strain on Pakistan’s foreign reserves, which have been under significant pressure due to a growing fiscal deficit and external debt obligations. Pakistan’s Finance Minister emphasized the importance of Beijing’s support in maintaining economic stability, citing China as a critical partner in its financial recovery efforts.
The debt rescheduling request comes amid ongoing discussions for broader economic cooperation between the two nations under the China-Pakistan Economic Corridor (CPEC). Analysts suggest that Pakistan’s move reflects its urgent need to manage liquidity and secure breathing space for economic reforms. China, which has consistently supported Pakistan in times of economic distress, is expected to evaluate the request in light of their strong bilateral ties.
