China has agreed to extend a USD 2 billion debt on existing terms, providing much-needed relief to debt-trapped Pakistan. Initially, China sought a hike in interest rates, but an understanding has been reached to roll over the loan with no changes in terms. This agreement comes as Pakistan faces challenges in maintaining foreign exchange reserves, relying on deposits from friendly countries.

On Friday, the index had plunged by 1200 points over the delay in announcing the results of the general elections; it had settled below 63,000.