Pakistan has repaid a $1.4 billion commercial loan to China. The amount is expected to be refinanced and returned within a few weeks.
State Bank of Pakistan (SBP) Governor Jameel Ahmad shared the update after a Senate Standing Committee on Finance meeting on Wednesday. He said Pakistan paid $2.2 billion in external debt during July 2026. Of this, $1.4 billion went to the Chinese commercial loan and $800 million covered other external debts.
The country’s overall external debt repayment burden has fallen from $26.5 billion to $21.5 billion. Interest payments for the year will total about $3.5 billion.
Ahmad said Pakistan still needs a $12 billion rollover from Saudi Arabia and China. Chinese banks have not yet refinanced the $1.4 billion, but the funds are expected after a short delay.
He also noted that over the past three years the central bank bought $28 billion from the market to build foreign exchange reserves. The strategy of reducing repayment pressure and raising reserves continues.
Saudi Arabia has already extended a $5 billion facility for three more years, which helped lower the near-term financing needs. These steps give Pakistan more breathing space while it works to strengthen its external position.