ISLAMABAD – Pakistan has formally requested China to complete the refinancing of a $1.3 billion commercial loan at the earliest, according to local media reports.
The request follows Pakistan’s external debt repayments made in July, during which the country paid a total of $2.2 billion, including the repayment of a US$1.3 billion Chinese commercial loan.
Reports said Pakistani and Chinese officials are holding discussion to complete the refinancing process. Pakistan is expected to receive the funds during current month of August 2026 after both sides finalises conditions and requirements.
Separately, State Bank of Pakistan Governor Jameel Ahmad recently said that Pakistan repaid $2.2 billion in external debt during July, reducing the country’s external debt repayment obligations for the current fiscal year from $26.5 billion to $21.5 billion. He also noted that around $3.5 billion will be paid in interest this year.
The governor added that the government is pursuing a strategy to ease debt repayment pressures while strengthening foreign exchange reserves.
As part of that strategy, Pakistan is also seeking the rollover of $12 billion in financing from Saudi Arabia and China.
