Pakistan seeks $1.3bn China refinancing
- Inflow is expected to provide timely support to Pakistan’s foreign exchange reserves
Pakistan has requested China to refinance a $1.3 billion commercial loan, with funds expected this month to bolster foreign exchange reserves and manage ongoing debt servicing.
- Pakistan's request for $1.3 billion loan refinancing from China.
- Expected boost to Pakistan's foreign exchange reserves.
- Ongoing discussions for expediting the refinancing process.
ISLAMABAD: Pakistan has reportedly requested China to refinance a USD 1.3 billion commercial loan, with the funds expected to be received later this month once the terms and conditions are finalised.
According to the sources, discussions with Chinese authorities are underway to expedite the refinancing process.
The inflow is expected to provide timely support to Pakistan’s foreign exchange reserves.
The sources said Pakistan made external debt repayments of USD 2.2 billion in July, including the repayment of a USD 1.3 billion Chinese commercial loan.
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The refinancing request comes as Pakistan continues to manage external financing needs and maintain reserve adequacy amid ongoing debt servicing requirements.
Business Recorder approached the Finance Ministry spokesperson for comments; however, till filing of this report, no response was received.
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