Pakistan Urges China to Expedite $1.3 Billion Refinancing as Forex Reserves Face Heat

The government has formally requested China to accelerate the refinancing of a $1.3 billion facility, official sources said, as Pakistan grapples with mounting external payment pressures. nnThe request comes at a time when Pakistan repaid $2.2 billion in external debt during July alone, a hefty outflow that placed significant strain on the country’s foreign exchange reserves. nnThe refinancing, once approved, is expected to provide some breathing room for the central bank and help stabilise the depleting reserve cushion. Authorities believe the swift approval from Beijing will be crucial in managing the country’s external financing needs in the coming months.nn— Staff Report, Awam Kee Awaz