Pakistan's Crucial Loan Deal with China Aims to Boost Economic Stability

Pakistan is set to secure $3.3 billion from two Chinese loans, boosting its foreign reserves. The deal involves a $2 billion syndicated loan and a $1.3 billion refinancing from ICBC, likely increasing reserves to over $14.5 billion. Prime Minister Sharif praised China's role in stabilizing Pakistan's economy.

Devdiscourse News Desk | Islamabad | Updated: 24-06-2025 21:44 IST | Created: 24-06-2025 21:44 IST

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Country:
Pakistan

Pakistan is on the verge of obtaining USD 3.3 billion through two foreign loans from Chinese banks, according to a media report. The loans include a syndicated loan and refinancing of commercial loans. If successful, this could propel Pakistan's foreign exchange reserves above USD 14 billion by the end of June.

Negotiations with Chinese banks are underway for a USD 2 billion syndicated loan and a USD 1.3 billion refinancing from the Industrial and Commercial Bank of China. Anticipated to close by June 2025, these deals would allow Pakistan to resolve short-term domestic debt and enhance foreign reserves further.

Prime Minister Shehbaz Sharif thanked China for its financial support during a meeting with Chinese Ambassador Jiang Zaidong. Emphasizing the China-Pakistan Economic Corridor's importance, this financial assistance contributes significantly to Pakistan's economic stability and macro-economic improvements.

(With inputs from agencies.)