Pakistan's Debt Balancing Act: Navigating Loans and Reserves

Pakistan has repaid a $1 billion loan to the Industrial and Commercial Bank of China (ICBC) with plans to refinance. The repayment lowered foreign reserves to a six-month low of $10.6 billion. As Pakistan regularly depends on Chinese financial support, additional loans are set to mature soon.

Pakistan has navigated a significant financial hurdle by repaying a $1 billion commercial loan to the Industrial and Commercial Bank of China (ICBC), with plans to refinance shortly thereafter.

The loan repayment has caused a temporary dip in the country's foreign exchange reserves, plunging them to a six-month low of $10.6 billion, as highlighted in a recent media report.

China has played a crucial role in Pakistan's financial landscape, consistently rolling over billions in cash deposits, commercial loans, and trade financing. As additional loans mature soon, Pakistan aims to secure refinancing to maintain its slender reserves.

(With inputs from agencies.)