Islamabad (HRNW) – Pakistan has repaid $700 million in commercial loans to the China Development Bank (CDB) this week, bringing the State Bank’s foreign exchange reserves down to $15.5 billion, according to official sources.
The loan had previously been rolled over by the CDB for three years. Government sources further revealed that another $1 billion CDB loan is set to mature in June, and authorities are considering early repayment in hopes of refinancing before the end of the current fiscal year.
The repayment comes ahead of an upcoming IMF mission scheduled to visit Pakistan from February 25 to March 11. The delegation will review negotiations for approval of a $1 billion tranche under the Extended Fund Facility, along with more than $200 million in climate financing. Formal talks with the federal government will begin on March 2, following an initial three-day stay in Karachi.
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