In a move that could ease

Pakistan’s financial pressure, China is preparing to provide over $3.7 billion in financial support next month, and most of it will be in Chinese yuan (RMB), not US dollars.

The assistance includes a loan rollover of $1.3 billion through the Industrial and Commercial Bank of China (ICBC), which Pakistan had previously repaid. Alongside that, another $2.1 billion syndicated loan from three

major Chinese banks is expected to be refinanced before maturity.

Who’s involved

• China Development Bank – RMB 9 billion

• Bank of China – RMB 3 billion

• ICBC – RMB 3 billion

This signals China’s ongoing shift away from dollar-based lending, favoring its own currency to increase global

yuan use, and deepen ties with strategic partners like Pakistan.

What it Means for Pakistan?

With over $25 billion needed in external financing for the next fiscal year, Pakistan is relying on a mix of:

• $12 billion in friendly rollovers (China, UAE, Saudi Arabia)

• $4.6 billion for development projects

• $3.2 billion in commercial loan refinancing from China

• $2 billion in IMF aid + $2 billion in deferred oil payments

As of May, foreign exchange reserves climbed to $11.4 billion after the latest IMF disbursement, but upcoming obligations remain

significant. Chinese support is expected to play a critical role in managing this gap.