Pakistan repays $1.4bn Chinese loan, awaits refinancing
新闻台署名 来源：新华社、《黎明报》、《阿拉伯新闻》、阿纳多卢通讯社与《分钟镜报》。由 GSRRA 编辑部翻译并节选。
Pakistan serviced $2.2bn in July, including the Chinese loan and $800m in other obligations
- Chinese refinancing expected within weeks.
- July debt servicing reaches $2.2bn.
- SBP reserves fall after heavy repayments.
Pakistan has repaid a $1.4 billion Chinese commercial loan, but Chinese banks have not yet refinanced the amount, The News reported.
The refinancing is expected to be provided to Islamabad after a few weeks, the report said, citing State Bank of Pakistan (SBP) Governor Jameel Ahmed.
“We have undertaken foreign debt servicing of $2.2 billion in July 2026, including $1.4 billion of Chinese commercial loan and the remaining $800 million on account of other loans,” Ahmed said while speaking to reporters outside Parliament House on Wednesday after attending a meeting of the Senate Standing Committee on Finance.
The repayment contributed to a decline in SBP-held foreign exchange reserves, which had climbed to $18.4 billion by July 3, 2026, before heavy repayments of Chinese commercial loans and other debt obligations brought them lower.
The country’s total foreign exchange reserves stood at $22.6 billion on July 17, 2026, comprising $17.2 billion held by the SBP and $5.4 billion held by commercial banks.
The SBP governor said foreign debt servicing had decreased from $26.5 billion in fiscal year 2024-25 to $21.5 billion in the current fiscal year 2026-27, owing to various factors, including declining interest rates.
Of the $21.5 billion, around $3.5 billion will be interest repayments during the current fiscal year, he said.
Ahmed said approximately $12 billion of total debt servicing consisted of deposits held with the SBP, while $3 billion was commercial loans expected to be refinanced. The remaining foreign debt obligations hover around $7 billion.
Of the total $12 billion in deposits, $4 billion is from China and $8 billion is from Saudi Arabia. Pakistan will require rollovers of deposits falling due in December 2026 and March 2027.
The SBP governor said Pakistan had repaid $2.2 billion in debt servicing in the first month of the fiscal year, adding that pressure on foreign debt servicing obligations would be lower during the remaining months from August 2026 to June 2027.
Ahmed further said Kuwait’s $250 million outstanding loan dated back to the 1990s.
According to the SBP governor, the central bank’s total purchases from the interbank market stood at $28 billion over the last three years. The SBP purchased around $9 billion in the last financial year to build a buffer against exogenous economic shocks.
Separately, Saudi Arabia has rolled over $5 billion in deposits for three years, helping Islamabad reduce pressure on its external account, Ahmed said.
When asked about Islamabad’s request to the United States for $10 billion in balance-of-payments support, the governor did not reply.
On increased debt servicing requirements projected by the International Monetary Fund for the next fiscal year, 2027-28, he said this would be analysed later.
As far as the current fiscal year is concerned, Pakistan is comfortable with its foreign debt servicing repayments, according to the report. It added that the central bank appeared likely to continue focusing on building foreign exchange reserves to absorb potential shocks, particularly in the event of a spike in international fuel prices.
Reference Link:- https://www.geo.tv/latest/675362-pakistan-repays-14bn-chinese-loan-awaits-refinancing
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
