Islamabad (HRNW)- Pakistan has repaid $1.4 billion in commercial debt to China, while purchasing $28 billion over the past three years to strengthen the country’s foreign exchange reserves, according to State Bank of Pakistan (SBP) Governor Jameel Ahmad.
According to a private TV report, the SBP Governor told media representatives after a meeting of the Senate Standing Committee on Finance that Pakistan repaid a total of $2.2 billion in external debt during July, including $1.4 billion in commercial debt to China and $800 million in other external liabilities.
Jameel Ahmad said that the refinancing of the Chinese commercial loan is expected within the next few weeks, adding that technical arrangements are currently underway. He also said that the government has purchased $28 billion over the last three years as part of a strategy to strengthen foreign exchange reserves and improve financial stability.
According to the SBP Governor, Pakistan’s annual external debt repayments have declined from $26.5 billion to $21.5 billion, of which $3.5 billion represents interest payments. He added that the rollover of approximately $12 billion from Saudi Arabia and China will be required to further stabilize the country’s foreign exchange reserves.
Economists say that the timely repayment of commercial loans is important for improving Pakistan’s credibility with international financial institutions, while analysts believe the expected refinancing of the Chinese loan will help ease short-term pressure on the economy and support fiscal stability.
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