Pakistan is in the final stages of securing a $3.3 billion loan package from Chinese financial institutions, comprising a $2 billion syndicated loan and a $1.3 billion refinancing of a previously repaid commercial loan. The agreements are expected to be concluded by June 30, 2025.
The syndicated loan, backed by a consortium of Chinese banks, will be provided for a three-year period. Meanwhile, the Industrial and Commercial Bank of China (ICBC) will handle the $1.3 billion refinancing component. If disbursed on schedule, the loan inflows are expected to push Pakistan’s foreign exchange reserves beyond $14 billion, offering much-needed breathing space to the economy.
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In rupee terms, the incoming loans would add an estimated Rs. 924 billion to the domestic financial system, bolstering liquidity.
Additionally, fresh data from the Economic Affairs Division confirms that Saudi Arabia disbursed $100 million in May 2025 under its oil facility arrangement, although the specific application of these funds remains undisclosed.
