Pakistan’s Central Bank Eyes $7 Billion Interbank Market Purchases

The State Bank of Pakistan anticipates purchasing over $7 billion from the interbank market during the current fiscal year. These funds are intended to facilitate external payments and enhance the country's foreign exchange reserves.

Pakistan has formally requested that China complete the refinancing of a $1.3 billion commercial loan at the earliest opportunity, according to available reports. The request comes after Pakistan made external debt repayments of $2.2 billion in July 2026, which included the repayment of the same $1.3 billion Chinese commercial loan.

Discussions are reportedly underway between Pakistani and Chinese officials to finalise the conditions for the refinancing. It is expected that Pakistan will receive the funds during August 2026, a move intended to support the country's foreign exchange reserves.

Separately, State Bank of Pakistan Governor Jameel Ahmad recently stated that the $2.2 billion debt repayment in July has reduced the country's external debt repayment obligations for the current fiscal year from $26.5 billion to $21.5 billion. He also noted that approximately $3.5 billion is scheduled for interest payments this year.

The government's strategy to ease debt repayment pressure also includes seeking the rollover of $12 billion in financing from both Saudi Arabia and China.

Pakistan has requested China for the early completion of the refinancing process for a $1.3 billion loan.