ISLAMABAD: Pakistan has repaid a $1.4 billion Chinese commercial loan, with the refinancing expected within the next few weeks, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Wednesday.
Speaking to reporters after a meeting of the Senate Standing Committee on Finance, the governor said Pakistan repaid $2.2 billion in external debt during July, including the $1.4 billion Chinese commercial loan and another $800 million in other external obligations.
He said technical work for refinancing the Chinese loan is underway and the funds are expected to be disbursed in the coming weeks.
The SBP governor also said the central bank has purchased $28 billion from the domestic foreign exchange market over the past three years as part of the government’s strategy to strengthen the country’s foreign exchange reserves and improve external sector stability.
According to Ahmad, Pakistan’s gross external financing requirement has declined from $26.5 billion to $21.5 billion for the current fiscal year. Of this amount, around $3.5 billion relates to interest payments on external debt.
He added that Pakistan will require the rollover of around $12 billion in deposits from Saudi Arabia and China to help maintain adequate foreign exchange reserves during the fiscal year.
