Islamabad: Pakistan is in advanced talks with Chinese financial institutions to secure approximately USD 3.3 billion in external financing by the end of June 2025 — a move expected to bolster the State Bank of Pakistan’s (SBP) foreign exchange reserves and support short-term debt repayments.
According to senior government officials, the planned financing includes two components: a USD 2 billion syndicated loan from a consortium of Chinese banks with a three-year maturity, and the refinancing of a USD 1.3 billion commercial loan from the Industrial and Commercial Bank of China (ICBC), which was earlier repaid by Islamabad.
If finalized in the coming days, the inflow will raise Pakistan’s foreign exchange reserves above the USD 14.5 billion mark, up from USD 11.7 billion recorded on June 13, 2025. The anticipated funding will assist in clearing maturing domestic debt obligations, particularly those due in the first ten days of July 2025. In rupee terms, the USD 3.3 billion injection would amount to approximately PKR 924 billion.
The financing is being pursued ahead of the close of the outgoing fiscal year and is expected to ease pressure on Pakistan’s external account while ensuring timely clearance of liabilities. Officials have not confirmed whether the financing will be provided in US dollars or Chinese yuan (RMB).
The expected Chinese financing is part of broader efforts by Pakistan to maintain macroeconomic stability, meet external obligations, and avoid balance-of-payments stress as the country continues to pursue reforms aimed at stabilizing the economy and attracting foreign investment.
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