China and Kuwait Pledge $4.3 Billion Loan Rollovers for Pakistan

Pakistan has obtained commitments from China and Kuwait to roll over loans totaling $4.3 billion, according to sources. The rollovers will help the country address its external financing requirements during the ongoing fiscal year.

China is expected to roll over $4 billion, and Kuwait will extend a rollover of $300 million. Sources in the Ministry of Finance indicated that the Chinese loan is anticipated to be rolled over in March 2027. The rollovers from China and Kuwait, along with financing from Saudi Arabia, are expected to be extended for approximately one year.

In total, Pakistan is scheduled to secure debt rollovers of $7.3 billion from Saudi Arabia, China, and Kuwait. These rollover arrangements form a key part of Pakistan's external financing strategy for the current fiscal year, during which the country faces external debt repayment obligations of approximately $21 billion. The expected $7.3 billion in rollovers is included in these obligations.

Finance Minister Muhammad Aurangzeb has also stated that Pakistan is expected to receive $1.21 billion from the International Monetary Fund (IMF) in December. The anticipated IMF disbursement, combined with loan rollovers from friendly countries, is expected to help Pakistan meet its external financing needs and maintain its foreign exchange reserves.

The rollovers come as Pakistan works to manage its debt obligations and stabilize its economy. The support from China, Kuwait, and Saudi Arabia, along with the IMF disbursement, is seen as crucial for the country's financial stability.