Islamabad, June 24, 2025: Pakistan is on track to finalize a $3.3 billion loan from China by June 30, 2025, in a critical move to strengthen its foreign exchange reserves and stabilize the national economy. The package includes a $2 billion syndicated loan from a group of Chinese banks and $1.3 billion refinancing from the Industrial and Commercial Bank of China (ICBC), aimed at replacing an earlier repaid commercial loan.
According to official sources, the syndicated loan from Chinese banks will carry a three-year maturity, providing much-needed breathing room for Pakistan’s financial management. If the funds are disbursed as scheduled, the State Bank of Pakistan’s foreign reserves could climb above $14 billion—offering a significant cushion amid ongoing economic uncertainty.
In local currency terms, this foreign support would inject nearly Rs. 924 billion into the Pakistani economy, which is currently grappling with inflationary pressures, fiscal deficits, and a weakening rupee.
This development comes as Islamabad continues its efforts to attract foreign funding to meet external financing needs without putting excessive pressure on local resources. The Pakistan $3.3 billion loan from China will not only help plug fiscal gaps but also enhance investor confidence as the country enters the new fiscal year.
In a separate update, the Economic Affairs Division revealed that Saudi Arabia provided $100 million in May 2025 under its oil facility agreement with Pakistan. However, the precise application of the funds remains undisclosed.
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As Pakistan inches closer to finalizing the Chinese loan deal, financial experts see this as a pivotal step toward macroeconomic stability—provided the funds are utilized with strategic discipline and transparency.
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