Pakistan to repay $1.3bn loan by Jan 10

ISLAMABAD: Pakistan will have to repay $1.3 billion in foreign loans by January 10, 2023, which may result in further depletion of the foreign exchange reserves.

“There is a due loan repayment of commercial loans to the tune of $1 billion to Dubai-based commercial banks. Now it has come to the surface that there is another loan repayment of $300 million due on account of a sovereign loan extended by Islamabad to the Chinese side for execution of an important project.

In totality, the due loan repayments in the first ten days of January 2023 stand at $1.3 billion,” top official sources confirmed to The News on Friday.

The foreign exchange reserves held by the State Bank of Pakistan stand at $5.88 billion and after repayments of $1.3 billion in the next 10 days, the reserves will nosedive to $4.5 billion if no major dollar injection is secured from any bilateral or multilateral creditors.