China extends Pakistan's debt repayment deadline

China has extended the repayment period of its $3.4 billion loan to Pakistan, which will increase Pakistan's foreign exchange reserves to $14 billion.

"This brought our reserves in line with the target set by the International Monetary Fund (IMF)," one of the sources told Reuters.

Loans from China, in particular, are playing a crucial role in bolstering Pakistan's reserves. According to IMF requirements, the country's reserves had to exceed $14 billion by June 30 of the current fiscal year.

Pakistani officials say the country's economy is stabilizing thanks to reforms being implemented as part of a $7 billion IMF financial assistance package.