Govt Eyes $ 3.3 billion in foreign loans from Chinese banks

• Loans bids that will be finalized by the end of June 2025: Officials.
• The first loan to be a $ 2 billion trade union funding for three years.
• Secondly, $ 1.3 billion will refinance the ICBC loan.

Islamabad: In the midst of continuous government efforts to stabilize the economic index, Pakistan is watching $ 3.3 billion in the form of two foreign loans from Chinese banks in the coming days, The news reported on Tuesday.

“Yes, we are still working closely with the high -level Chinese to complete the methods of this expected agreement. We expect the attack of two different foreign loans from Chinese banks by the end of June 2025,” the top officials confirmed.

“A $ 2 billion funding consortium will be allocated to Pakistan from a consortium of Chinese banks for three years,” they added.

Meanwhile, the second loan of $ 1.3 billion will be a refinancing of a commercial loan from China’s Industrial and Commercial Bank (ICBC) – which was returned from Islamabad a few months ago.

It is expected that the exchange stocks held by the Pakistani State Bank (SBP) will exceed the $ 14 billion signal if this agreement is implemented within the outgoing financial year, which expires on June 30.

In Rupia, the government will be able to produce about RS924 billion ($ 3.3 billion), so the maturity of short -term domestic debt will be cleared from the deadline of the first ten days of July 2025.

Pakistan’s exchange reserves owned by the Pakistani State Bank (SBP) amounted to $ 11.7 billion by June 13, 2025 and the expected injection of $ 3.3 billion will help SBP lift foreign stocks.

However, taking into account the outflow requirements, there are strong expectations that foreign stocks owned by SBP can stand over $ 14.5 billion by the end of June 2025.

This scribe contacted the Treasury spokesman Qamar Abbasi and requested two trade loans and whether it would be provided with a RMB Chinese currency instead of US dollars. The official spokesman did not share any answer until this story was deposited.

In another important but relative development, when Hormuz’s strait can witness an exclusion due to intensified war between Iran and Israel, oil prices began to observe an increase in the international market

Oil prices have already reached $ 75-76 per barrel, though they fell slightly on Monday. There is strong concern that if the war persists and Iran manages to prevent the route, then prices could escalate further in the coming days. If oil prices crossed $ 85 to $ 90 per barrel, it will lead to the surface of the current account in a deficit after remaining surplus in the outgoing financial year 2024-25 ending June 30, 2025.

“The Kingdom of Saudi Arabia has provided $ 100 million in May 2025 to provide oil facilities,” the Economic Affairs (EAD) data shows, but did not clearly mention whether this amount was used for oil or any other purpose.