Amid ongoing government efforts to stabilise the economic indicator, Pakistan is eyeing $3.3 billion in the form of two foreign loans from Chinese banks within the next few days.
“Yes, we are still working closely with the Chinese high-ups to finalise modalities of this expected deal. We are expecting the striking of two different foreign loans from Chinese banks till the end of June 2025,” top officials of the government confirmed to the publication.
“A syndicated financing of $2 billion will be made available to Pakistan by a consortium of Chinese banks for three years,” they added.
Meanwhile, the second loan of $1.3 billion will be a refinancing of a commercial loan from the Industrial and Commercial Bank of China (ICBC) — which was paid back by Islamabad a few months ago.
It is expected that the foreign exchange reserves held by the State Bank of Pakistan (SBP) will surpass the $14 billion mark if this deal materialises within the outgoing financial year, which ends on June 30.
In rupee terms, the government will be able to generate approximately Rs924 billion ($3.3 billion), so the maturity of the short-term domestic debt would be cleared by the deadline of the first ten days of July 2025.
Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) stood at $11.7 billion by June 13, 2025, and the expected injection of $3.3 billion would help the SBP to jack up the foreign reserves to touch $15 billion, mark.
