Pakistan Repays $1.4 Billion Chinese Loan, Refinancing Expected Within Weeks

Islamabad:Pakistan has repaid a **$1.4 billion** commercial loan to China, with the financing expected to be renewed within the next few weeks, State Bank of Pakistan (SBP) Governor **Jameel Ahmad** said.

Speaking to reporters outside Parliament House after attending a meeting of the Senate Standing Committee on Finance, the SBP governor said Pakistan repaid **$2.2 billion** in external debt during July as part of its strategy to ease debt pressures and strengthen the country’s foreign exchange reserves.

Jameel Ahmad said Pakistan’s total external debt servicing requirement has declined from **$26.5 billion** to **$21.5 billion**, with approximately **$3.5 billion** to be paid in interest during the current fiscal year.

He added that Pakistan will require the rollover of around **$12 billion** in deposits and loans from **Saudi Arabia** and **China** to support its external financing needs.

The SBP governor said that although Pakistan has already repaid the **$1.4 billion** commercial loan to China, Chinese banks have not yet refinanced the facility. However, he expressed confidence that the funds would be disbursed back to Islamabad after a delay of a few weeks.

Jameel Ahmad also revealed that over the past **three years**, the State Bank of Pakistan has purchased **$28 billion** to strengthen the country’s foreign exchange reserves.

According to the governor, the **$2.2 billion** in external debt repayments made during July included the **$1.4 billion** Chinese commercial loan and an additional **$800 million** in repayments toward other external liabilities.