Pakistan is in negotiations to secure a substantial $3.3 billion loan from Chinese banks, which includes a $2 billion syndicated loan and a $1.3 billion refinancing of a previously repaid commercial loan. The agreements are anticipated to be finalized by June 30, 2025.

The $2 billion syndicated loan will be extended by a consortium of Chinese banks for a three-year term, while the $1.3 billion refinancing will be provided by the Industrial and Commercial Bank of China (ICBC). If these loans are disbursed on schedule, they could elevate the State Bank of Pakistan’s foreign exchange reserves to over $14 billion.

In rupee terms, the loans are expected to inject approximately Rs. 924 billion into the economy, providing a much-needed boost amid ongoing financial challenges.

In a related development, data from the Economic Affairs Division indicates that Saudi Arabia contributed $100 million in May 2025 for an oil facility, although the specific use of these funds remains unconfirmed.