China rolls over Pakistan loans
Analysis based on 6 articles · First reported Jun 29, 2025 · Last updated Jun 30, 2025
The rollover of $3.4 billion in loans from China, combined with other financing, significantly boosts Pakistan's foreign exchange reserves to $14 billion, meeting the International Monetary Fund's target. This development is expected to stabilize Pakistan's economy and improve investor confidence, potentially leading to a positive market sentiment for Pakistan.
China has rolled over $3.4 billion in loans to Pakistan, comprising $2.1 billion that had been in Pakistan's central bank's reserves for three years and refinancing a $1.3 billion commercial loan. This, along with an additional $1 billion from Middle East commercial banks and $500 million from multilateral financing, has increased Pakistan's foreign exchange reserves to $14 billion. This achievement brings Pakistan's reserves in line with the International Monetary Fund's requirement of over $14 billion by June 30, which is crucial for ongoing reforms under a $7 billion International Monetary Fund bailout and for stabilizing Pakistan's economy.
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