China okays rollover, refinancing of $3.4bn loans

ISLAMABAD: In a timely supportive move, China has extended rollover and refinancing of its $3.4 billion commercial loans, facilitating Islamabad to meet the IMF condition of keeping the foreign reserves at over $14 billion at the end of the current fiscal year on June 30.

China has rolled over $2.1 billion, which has been lying in the State Bank of Pakistan (SBP) for the last three years, and also refinanced another $1.3 billion commercial loan, which Islamabad had paid back two months ago.

Another $1 billion from Middle Eastern commercial banks and $500 million from multilateral financing has also been received, an official confided to The News. “This brings our reserves in line with the IMF target,” said the official.

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.

Geo adds: Pakistani authorities say the economy has stabilised through ongoing reforms under a $7 billion IMF bailout.

Earlier, on March 9, 2025, China extended the repayment period of a $2 billion loan by one year, confirmed the finance ministry. Around 92% of Pakistan’s external debt is owed to three major sources, including multilateral and bilateral creditors as well as international bonds.

Among the bilateral creditors, China is on the top keeping in view the total external debt and liabilities.

Pakistan’s forei