ISLAMABAD: The federal government is reported to have formally requested Beijing to expedite the refinancing of $1.3 billion, underscoring Islamabad’s heavy dependence on financial lifelines from friendly countries to stabilize its external account.
According to media reports, Pakistani authorities are engaged in talks with their Chinese counterparts to finalize terms at the earliest, with expectations that the amount could be rolled over within the current month.
Officials in the Ministry of Finance said the early receipt of funds would provide critical support to foreign exchange reserves, which remain under pressure from debt repayments and external financing needs.
Last July, it may be recalled here, Pakistan repaid $2.2 billion, including $1.3 billion in Chinese commercial debt. The latest refinancing request highlights the government’s recurring reliance on bilateral partners to plug gaps in reserves and meet external obligations.
Sources added that the central bank plans to purchase more than $7 billion from the interbank market during the ongoing fiscal year. These dollars will be directed toward external payments and reserve accumulation, a strategy aimed at cushioning the economy against volatility.
Observers note that while such inflows from friendly nations offer short‑term relief, the structural dependence on external financing underscores the fragility of Pakistan’s balance of payments.
Yet, the government’s ability to secure timely rollovers from allies like China remains pivotal in maintaining reserve adequacy and market confidence.
