Pakistan 'seeks' $1.3 billion refinancing from China

ISLAMABAD: Pakistan has requested China to refinance a $1.3 billion commercial loan, with the funds expected to be received later this month once the terms and conditions are finalized, ARY News reported on Tuesday, citing sources in the Ministry of Finance.

According to the sources, discussions with Chinese authorities are underway to expedite the refinancing process. The inflow is expected to provide timely support to Pakistan’s foreign exchange reserves.

The sources said Pakistan made external debt repayments of $2.2 billion in July, including the repayment of a $1.3 billion Chinese commercial loan.

Meanwhile, the State Bank of Pakistan is expected to purchase more than $7 billion from the interbank market during the current fiscal year.

Officials said the acquired dollars will be used to meet external debt obligations while also strengthening the country’s foreign exchange reserves.

The refinancing request comes as Pakistan continues to manage external financing needs and maintain reserve adequacy amid ongoing debt servicing requirements.

Earlier, Syed Mustafa Kamal, Federal Minister for National Health Services, Regulations and Coordination, announced a major breakthrough for Pakistan’s pharmaceutical sector following the successful Pakistan-China Pharmaceutical Business-to-Business (B2B) Conference held in Islamabad on 17–18 July.

Addressing a press conference, the Minister said the conference marks a significant milestone in the government’s efforts to transform Pakistan’s pharmaceutical industry into a globally competitive sector, attract foreign investment, strengthen local manufacturing, and reduce dependence on imported pharmaceutical products.

“The purpose of sharing this success is to present a positive image of Pakistan to our people and the world. While challenges exist, it is equally important to highlight our achievements that restore confidence in Pakistan’s economy and its investment potential,” the Minister said.