Pakistan Repays $1.4 Billion Chinese Loan, Refinancing Expected Soon
ISLAMABAD: Pakistan has repaid a $1.4 billion Chinese commercial loan, while arrangements for refinancing the amount are expected to be completed in the coming weeks, State Bank of Pakistan (SBP) Governor Jameel Ahmad said.
Speaking after a meeting of the Senate Standing Committee on Finance, the SBP governor said Pakistan cleared around $2.2 billion in external debt payments during July. This included the repayment of the $1.4 billion Chinese commercial loan along with another $800 million in external financial obligations.
Jameel Ahmad said technical procedures for refinancing the Chinese loan are currently in progress, and the funds are expected to be received soon after completion of the process.
The SBP governor also highlighted that the central bank has purchased around $28 billion from the domestic foreign exchange market over the past three years as part of efforts to strengthen foreign exchange reserves and improve external sector stability.
According to the governor, Pakistan’s gross external financing requirement has decreased from $26.5 billion to $21.5 billion for the ongoing fiscal year. He added that approximately $3.5 billion of this amount is linked to interest payments on external debt.
Jameel Ahmad further stated that Pakistan will need the rollover of around $12 billion in deposits from Saudi Arabia and China to help maintain sufficient foreign exchange reserves during the current fiscal year.
