China extends $2.4 billion loan to Pakistan for 2 years amidst economic crisis

Pakistan's finance minister announced that China has rolled over a $2.4 billion loan for the country for two years, providing relief for Pakistan's economic crisis. The loan extension will help boost Pakistan's foreign exchange reserves, which were only enough to cover two months of imports. China's support has been crucial in helping Pakistan avoid default, although concerns about the growing Chinese loans being a debt trap have been raised. This development comes after the International Monetary Fund deposited a $1.2 billion bailout installment, and Pakistan's foreign exchange reserves have increased to $14 billion. Prime Minister Shehbaz Sharif stated that Pakistan no longer faces the risk of default, and he attributed the economic downturn to alleged corruption under former Prime Minister Imran Khan.