Karachi (Commerce Desk): Pakistan has repaid a commercial loan worth $1.4 billion to China, while $28 billion has been purchased over the past three years to increase foreign exchange reserves.
Speaking to the media after a meeting of the Senate Standing Committee on Finance, State Bank Governor Jameel Ahmed said that the pressure of external debt repayments has decreased this year compared to the past.
He said that during July, a total of $2.2 billion in external loans was repaid, which included the $1.4 billion commercial loan returned to China along with other payments worth $800 million.
According to the State Bank Governor, refinancing of the said loan by China is expected within a few weeks, and necessary steps are currently underway.
He said that under the government’s policy, $28 billion was purchased over the past three years to strengthen foreign exchange reserves, which has brought stability to the financial system.
Jameel Ahmed said that Pakistan’s external debt repayment obligations have decreased from $26.5 billion to $21.5 billion, of which $3.5 billion has been allocated for interest payments.
He further said that to maintain foreign exchange reserves at an improved level, Pakistan will need a total loan rollover of $12 billion from Saudi Arabia and China.