Pakistan Seeks China to Refinance $1.3bn Loan

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

According to the sources, talks with Chinese authorities are underway to speed up the refinancing process. The funds are expected to provide timely support to Pakistan’s foreign exchange reserves.

The sources said Pakistan repaid $2.2 billion in external debt in July, including 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 dollars will be used to meet external debt payments and strengthen the country’s foreign exchange reserves.

The refinancing request comes as Pakistan continues to manage its external financing needs and maintain adequate foreign exchange reserves amid ongoing debt repayment obligations.

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

Speaking at a press conference, the minister said the conference was an important step in the government’s efforts to make Pakistan’s pharmaceutical industry globally competitive, attract foreign investment, improve local manufacturing and reduce reliance on imported medicines.

“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.