China Refinances Loans to Bolster Pakistan’s Reserves

According to a finance ministry source on Sunday, China has refinanced loans to Islamabad totaling $3.4 billion. This financial boost, in conjunction with other recent commercial and multilateral lending, is expected to elevate Pakistan’s foreign exchange reserves to $14 billion.

The source indicated that Beijing refinanced $2.1 billion, which has been part of the State Bank of Pakistan’s reserves for the past three years. Additionally, another commercial loan of $1.3 billion, which Islamabad had previously repaid two months prior, was also refinanced.