Pakistan looking to receive $3.3 billion in Chinese loans
Pakistan is expected to receive $3.3 billion in financial support from Chinese banks in the coming days, comprising a $2 billion syndicated loan and a $1.3 billion refinancing arrangement.
The fresh inflows are part of a
broader effort to bolster the country’s foreign exchange reserves, which are
anticipated to exceed $14 billion by June 30, 2025—marking the end of the
current fiscal year.
The $2 billion syndicated loan will
be extended by a consortium of Chinese banks for a tenure of three years, while
the $1.3 billion refinancing is linked to a commercial facility earlier repaid
by Pakistan to the Industrial and Commercial Bank of China (ICBC).
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These funds are expected to provide
critical support to the government’s short-term domestic debt management, with
around Rs924 billion (approx. $3.3 billion) required to settle maturing
liabilities in the first ten days of July 2025.
As of June 13, 2025, the State Bank
of Pakistan’s (SBP) foreign exchange reserves stood at $11.7 billion. The
anticipated inflows from Chinese lenders could raise this figure to
approximately $15 billion, though subsequent outflows may result in net
reserves around $14.5 billion by month-end.
Officials have not disclosed whether
the loans will be disbursed in Chinese yuan (RMB) or US dollars, and the Ministry
of Finance has so far declined to comment on the currency denomination.
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Negotiations between Pakistan and
Chinese authorities are reportedly in the final stages, and formal agreements
are expected to be signed shortly.
Source:
Profit Pakistan