Islamabad: (RightNow) Pakistan has formally requested $1.3 billion refinancing from China. The government has instructed to expedite the process.

Sources indicate that discussions between Pakistani and Chinese officials are ongoing to finalize the refinancing terms. Once agreed, the funds are expected to be received this month.

According to the Ministry of Finance, the prompt receipt of funds will support foreign exchange reserves. Last month, $2.2 billion was paid, including $1.3 billion in Chinese loan repayments.

During the current fiscal year, the central bank expects to purchase approximately $7 billion from the interbank market. This will be used to improve external payments and foreign exchange reserves.

It is noteworthy that improving foreign exchange reserves is crucial for stabilizing Pakistan’s economy. Financial cooperation with China plays a significant role in this effort.