Pakistan has formally asked China to speed up the refinancing of a $1.3 billion commercial loan. The request aims to support the country’s foreign exchange reserves and help maintain economic stability.
Officials say the funds are expected to arrive later this month once the remaining terms are finalised. Pakistani and Chinese authorities are working closely to complete the process quickly.
This comes after Pakistan repaid $2.2 billion in external debt during July 2026. The repayments included the $1.3 billion Chinese commercial loan. The large outflows put temporary pressure on foreign reserves.
Finance Ministry sources expect the refinancing to help recover some of the recent decline in reserves and provide extra liquidity. Pakistan’s total liquid foreign exchange reserves stood at about $22.4 billion as of late July.
China remains one of Pakistan’s most important economic partners. It has provided loans, deposits, and support for major infrastructure projects over the years. The current request continues this long-standing financial cooperation.
Separately, the State Bank of Pakistan plans to buy more than $7 billion from the interbank market this fiscal year. These dollars will help meet external payments and further strengthen reserves.
