Pakistan seeks $1.3 billion refinancing from China
Published On 04 Aug, 2026
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 $2.2 billion in July, including the repayment of a $1.3 billion Chinese commercial loan.
Meanwhile, the State Bank of Pakistan is expected to purchase more than $7 billion from the interbank market during the current fiscal year.
Officials said the acquired dollars will be used to meet external debt obligations while also strengthening the country’s foreign exchange reserves.
The refinancing request comes as Pakistan continues to manage external financing needs and maintain reserve adequacy amid ongoing debt servicing requirements.
