National ( The cow news digital ) Pakistan has repaid $2.2 billion in external debt during July, including a $1.4 billion commercial loan to China, State Bank of Pakistan (SBP) Governor Jameel Ahmad announced.
Speaking to reporters outside Parliament House following a briefing to the Senate Standing Committee on Finance, the central bank chief stated that the refinancing of the $1.4 billion Chinese debt is expected within the coming weeks. He noted that while the commercial loan was settled on time, Chinese financial institutions are scheduled to re-lend the funds to Islamabad after a brief operational delay.
Governor Ahmad detailed that out of the total $2.2 billion paid in July 2026, $1.4 billion went toward the Chinese commercial loan, while the remaining $800 million covered other foreign debt obligations. He highlighted that through strategic repayments, the country’s gross external financing requirement has decreased from $26.5 billion to $21.5 billion, with approximately $3.5 billion allocated purely for interest payments.
To manage debt pressures and bolster foreign exchange reserves, the SBP chief emphasized that Pakistan will still require a rollover of $12 billion in bilateral loans from Saudi Arabia and China. He further revealed that the central bank purchased $28 billion from the local market over the past three years to stabilize and build up the country’s depleted foreign currency reserves.
Ahmad expressed confidence that the ongoing strategy to lower repayment pressures and build foreign exchange buffers will continue to maintain financial stability in the current fiscal year.
