- July 30, 2026
- Posted by: Tresmark
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Pakistan has repaid a USD 1.4 billion Chinese commercial loan, with refinancing from Chinese banks expected in the coming weeks, State Bank of Pakistan (SBP) Governor Jameel Ahmad said.
Speaking after a meeting of the Senate Standing Committee on Finance, Ahmad said Pakistan repaid USD 2.2 billion in external debt during July 2026, comprising the USD 1.4 billion Chinese commercial loan and around USD 800 million in other debt obligations. He added that the repayments would ease external debt servicing pressure for the remainder of the fiscal year.
The SBP governor said Saudi Arabia's decision to roll over USD 5 billion in deposits for three years had helped reduce Pakistan's external financing requirements for FY2026-27 from USD 26.5 billion to USD 21.5 billion. Of the current year's total debt servicing, around USD 3.5 billion relates to interest payments.
Ahmad said approximately USD 12 billion of Pakistan's external obligations comprise deposits held with the SBP, including USD 8 billion from Saudi Arabia and USD 4 billion from China, which are expected to be rolled over when they mature in December 2026 and March 2027, respectively.
The governor also disclosed that the SBP has purchased USD 28 billion from the interbank foreign exchange market over the past three years, including around USD 9 billion during the last fiscal year, to strengthen foreign exchange reserves and build buffers against external shocks.
Pakistan's total foreign exchange reserves stood at USD 22.6 billion as of 17 July 2026, including USD 17.2 billion held by the SBP and USD 5.4 billion by commercial banks. The governor noted that reserves had declined after recent external debt repayments but said Pakistan remained comfortable with its debt servicing requirements for the current fiscal year.
