Pakistan’s foreign exchange reserves are expected to rise significantly to around $14 billion, driven by a mix of fresh and rolled-over loans—mainly from China—along with other commercial and multilateral funding.
China has played a pivotal role in this development by rolling over $3.4 billion in loans. This includes $2.1 billion that has been part of Pakistan’s central bank reserves for the past three years, and the refinancing of another $1.3 billion commercial loan that Pakistan had repaid two months prior. In addition to the Chinese support, Pakistan has also received $1 billion from Middle Eastern commercial banks and $500 million from multilateral financing. These combined inflows are vital for shoring up Pakistan’s historically low foreign reserves.
Pakistani authorities have consistently stated that the nation’s economy is stabilizing due to ongoing reforms implemented under a $7 billion IMF bailout program. This program, which saw its first review completed by the IMF Executive Board on May 9, 2025, has already led to the disbursement of approximately $1 billion, bringing total disbursements under the Extended Fund Facility (EFF) arrangement to about $2.1 billion. The IMF has also approved an additional $1.4 billion under the Resilience and Sustainability Facility (RSF) to help Pakistan build economic resilience against climate vulnerabilities.
