Financial help arrives as newly elected Khan holds coalition talks to form a government after Imran Khan’s party, the PTI, won the largest number of seats in the July 25 elections.
The news of the loan has caused Pakistan’s currency, the rupee, to increase by 3%, the largest jump recorded by the country in almost a decade.
This move represents Beijing’s latest attempt to maintain close ties with its allies in the wake of a trade war with the United States.
Following The television declaration of Mr Khan in which, after declaring the victory, he also said that he hopes to maintain close ties with China.
He said: “Our neighbor is China, we will further strengthen our relations with it.