ISLAMABAD: Pakistan has repaid $700 million against a commercial loan obtained from China, resulting in a decline in the foreign exchange reserves of the State Bank of Pakistan to $15.5 billion, according to financial sources.
Reports said the payment was made to the China Development Bank, which had earlier rolled over the same facility for three years.
Government sources indicated that another $1 billion loan from the CDB is maturing in June, and authorities are considering early repayment in hopes of securing refinancing before the end of the current fiscal year.
The development comes ahead of a scheduled visit by a mission of the International Monetary Fund from February 25 to March 11. The review talks will focus on approval of a $1 billion tranche under the Extended Fund Facility as well as more than $200 million in climate financing.
The IMF delegation is expected to spend the initial days in Karachi before commencing formal discussions with federal authorities from March 2.