Pakistan has received assurances from China and Kuwait to extend loans worth $4.3 billion, offering support as the country prepares to meet its external financial obligations.
According to sources in the Ministry of Finance, China is expected to roll over $4 billion, while Kuwait will extend another $300 million.
The Chinese loan rollover is expected to take place in March 2027. Meanwhile, loans from China, Kuwait and Saudi Arabia are expected to receive extensions of approximately one year.
With these arrangements, Pakistan expects to secure a total of $7.3 billion in loan rollovers from the three countries.
Pakistan Faces $21 Billion in External Payments
The expected rollovers come as Pakistan faces external debt repayment obligations of approximately $21 billion during the current fiscal year.
The government expects the $7.3 billion in extended loans to help manage these payments and reduce pressure on its foreign exchange reserves.
Saudi Arabia has already agreed to roll over its separate $3 billion loan. Finance Minister Muhammad Aurangzeb confirmed the development following discussions with his Saudi counterpart.
The arrangements with China and Kuwait would add further support to Pakistan’s external financing plans.
IMF Tranche Expected in December
Pakistan is also expecting to receive $1.21 billion from the International Monetary Fund (IMF) in December.
The expected disbursement, alongside the loan extensions, could help the country meet its external financing requirements.
However, the China and Kuwait arrangements are currently reported as assurances from Finance Ministry sources. Their expected extensions remain part of the government’s broader financing strategy.
Together, the rollovers and anticipated IMF funding are expected to support Pakistan’s foreign exchange reserves as it manages upcoming international payments.
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