State Bank Governor Jameel Ahmad says Pakistan expects the Chinese commercial loan to be refinanced within weeks as the country’s external debt repayment burden declines.
ISLAMABAD, Pakistan — WEB DESK: Pakistan repaid $2.2 billion in external debt during July 2026, including a $1.4 billion commercial loan to China, which is expected to be refinanced within the next few weeks, State Bank of Pakistan (SBP) Governor Jameel Ahmad said.
Speaking to reporters outside Parliament House after attending a meeting of the Senate Standing Committee on Finance, Ahmad said the government is continuing its strategy to ease debt repayment pressures while strengthening the country’s foreign exchange reserves.
Chinese Loan Expected to Be Refinanced
The SBP governor said Pakistan has already repaid the $1.4 billion commercial loan to Chinese banks.
He added that the refinancing has not yet been completed but is expected to be finalized within a few weeks, allowing the funds to return to Pakistan.
External Debt Obligations Declining
According to Ahmad, Pakistan’s outstanding external debt repayment obligations have declined from $26.5 billion to $21.5 billion.
He said around $3.5 billion of the remaining obligations relate to interest payments.
The governor also noted that Pakistan will require the rollover of approximately $12 billion in deposits and financing from Saudi Arabia and China during the current fiscal year.
Foreign Exchange Reserves
Ahmad revealed that the State Bank has purchased $28 billion from the foreign exchange market over the past three years to strengthen the country’s reserves.
He said the $2.2 billion repaid in July included the $1.4 billion Chinese commercial loan and approximately $800 million in repayments of other external loans.
The governor said Pakistan remains focused on maintaining external sector stability through prudent debt management and reserve accumulation.
