ISLAMABAD: Pakistan has approached China for the refinancing of a $1.3 billion commercial loan, with the funds expected to be disbursed later this month after both sides finalise the required terms, according to a media report citing Finance Ministry sources.
The report said discussions between Pakistani and Chinese authorities are progressing to complete the refinancing process, which is expected to provide support to the country’s foreign exchange reserves.
Sources revealed that Pakistan repaid $2.2 billion in external debt during July, including the settlement of the $1.3 billion Chinese commercial loan that is now being sought for refinancing.
Officials also said the State Bank of Pakistan (SBP) plans to purchase more than $7 billion from the interbank market during the current fiscal year. The funds will be used to meet upcoming external debt repayments while helping strengthen the country’s reserve position.
The move is part of the government’s broader strategy to manage external financing requirements and maintain adequate foreign exchange reserves amid continuing debt servicing obligations.
Separately, Federal Minister for National Health Services Syed Mustafa Kamal highlighted a major development for Pakistan’s pharmaceutical industry following the Pakistan-China Pharmaceutical Business-to-Business (B2B) Conference held in Islamabad on July 17–18.
The minister said the event would help attract Chinese investment, expand domestic pharmaceutical manufacturing, reduce reliance on imported medicines, and improve the sector’s competitiveness in international markets.
He added that showcasing such achievements is essential for enhancing Pakistan’s global image and restoring investor confidence in the country’s economic potential.
