ISLAMABAD – Pakistan has secured assurances from China and Kuwait for the rollover of loans totalling $4.3 billion a day after Saud Arabia agreed to roll over $3 billion loan.
The development comes amid uncertainty over the proposed $10 billion in US financial assistance following the 2026 midterm elections, in which Democrats secured a majority in Congress, while President Donald Trump acknowledged electoral setbacks.
Pakistan had requested $10 billion in financial assistance from the US in July this year as part of its efforts to explore access to international financial markets, Finance Minister Muhammad Aurangzeb has said.
Speaking to the media, Aurangzeb said the request for American financial support should be viewed in a broader economic and financial context. He added that receiving US assistance would be a positive development, but Pakistan would continue pursuing its economic objectives even without it.
The finance minister explained that Pakistan was exploring opportunities to access international financial markets when it approached the United States for financial assistance in July.
He said Pakistan gained access to US markets during the first week of September and subsequently raised $3 billion from the international financial market.
Aurangzeb stressed that the government had alternative arrangements and a clear plan to move forward, regardless of whether Washington provided the requested assistance.
In latest development, sources in the Ministry of Finance said China has agreed to roll over $4 billion, while Kuwait has assured an extension of a $300 million loan. Saudi Arabia has also agreed to roll over its $3 billion loan.
The Chinese loan is expected to be rolled over in March 2027, while the arrangements with all three countries are expected to remain in place for approximately one year.
Finance Minister Muhammad Aurangzeb confirmed that the Saudi loan rollover had been finalised following a meeting with his Saudi counterpart. He described the discussions as positive and expressed confidence in the strong bilateral relationship.
He added that Pakistan currently had no need to seek further financial assistance from Saudi Arabia.
Pakistan Expects $1.21 Billion IMF Disbursement
Pakistan is also expecting to receive $1.21 billion from the International Monetary Fund (IMF) in December, according to sources in the Ministry of Finance.
The country’s total external payment requirements for the current fiscal year are estimated at $21 billion. Of this amount, $7.3 billion is expected to be managed through loan rollovers from Saudi Arabia, China and Kuwait.
Aurangzeb also said the country currently has foreign exchange reserves sufficient to cover three months of imports.
He highlighted the recurring burden of Eurobond repayments, saying Pakistan has to repay approximately €1.5 billion annually.
