China will extend $3.7 billion in financial assistance to Pakistan next month, bolstering the country’s foreign exchange reserves.

The funding includes both refinancing and fresh disbursements, primarily in Chinese yuan (RMB) rather than US dollars, marking a shift in lending strategy.

Key details of the package:
🔹 $1.3 billion rollover from a previously repaid loan.
🔹 $2.1 billion syndicated financing from major Chinese banks, expected to be refinanced before maturity in June.
🔹 Confirmation from Chinese authorities to refinance all loans due between March and June 2025.

Pakistan’s foreign exchange reserves recently surpassed $11 billion, following an IMF disbursement. However, to meet financial obligations, the country still requires over $25 billion in external funding through rollovers, project financing, and IMF disbursements.

The government is actively working to secure financing from friendly nations and global institutions, with economic authorities overseeing the process.