Pakistan eyes $3.3 billion loan from Chinese banks

Pakistan is set to receive $3.3 billion in foreign loans from Chinese banks within the coming days, as part of a deal that includes a $2 billion syndicated loan and a $1.3 billion refinancing of commercial loans, The News reported, citing government officials who confirmed that the negotiations with Chinese authorities are ongoing to finalise the details of the two loans. 

This move is expected to help Pakistan’s foreign exchange reserves surpass the $14 billion mark by the end of June 2025, the end of the current fiscal year. 

The syndicated loan of $2 billion will be provided by a consortium of Chinese banks for a period of three years. The second loan, a $1.3 billion refinancing arrangement, is linked to a commercial loan previously repaid by Pakistan to the Industrial and Commercial Bank of China (ICBC).

The government is set to generate approximately Rs924 billion ($3.3 billion) to clear the maturity of short-term domestic debt by the first ten days of July 2025.

Currently, SBP reserves stand at $11.7 billion as of June 13, 2025. The expected inflow from these loans would raise the reserves to approximately $15 billion, though outflows could see a final figure closer to $14.5 billion by the month’s end.

The Ministry of Finance declined to comment whether the loans would be provided in Chinese currency (RMB) or in the US dollars.