China rolls over $3.4 billion loans to Pakistan, say sources

KARACHI: China has rolled over $3.4 billion in loans to Pakistan, two senior Pakistani government officials told Reuters on Sunday, in a move that will help boost Islamabad’s foreign exchange reserves, a requirement of the International Monetary Fund (IMF).

Beijing rolled over $2.1 billion, which has been in Pakistan’s central bank’s reserves for the last three years, and refinanced another $1.3 billion commercial loan, which Islamabad had paid back two months ago, the sources said.

The officials asked not to be named as they were not authorised to discuss the matter publicly ahead of an official announcement.

Another $1 billion from Middle Eastern commercial banks and $500 million from multilateral financing have also been received, one of the officials said.

“This brings our reserves in line with the IMF target,” he said.

The loans, especially those from China, are critical to shoring up Pakistan’s low foreign reserves, which the IMF required to be over $14 billion at the end of the current fiscal year on June 30.

Pakistani authorities say that the country’s economy has stabilised through ongoing reforms under a $7 billion IMF bailout.

Back in May 2025, Pakistan’s total liquid foreign reserves increased to US$16.64 billion by the week ended May 16.

Pakistan’s reserves held by the SBP increased to $ 11.44 billion following a tranche from the International Monetary Fund.

“SBP reserves increased by US$ 1,043 million to US$ 11,446.5 million as SBP received 2nd tranche of SDR 760 million (US$ 1,023 million) from the IMF under EFF program on May 13, 2025,“ the central bank said.

Meanwhile, the net foreign reserves held by commercial banks were recorded as $ 5.2 billion.

Total liquid foreign reserves held by the country, in the previous week ended on May 09, 2025, were $ 15.61 billion.

Among them the central bank held foreign reserves recorded as $ 10.4 billion while reserves of $ 5.21 billion were held by the commercial banks.