Story perspectives

Pakistan Faces Financial Strain Amid Loan Repayment and Debt

2/16/2026

Summary

Story summary

Pakistan repaid a $700 million loan to the China Development Bank, lowering its foreign exchange reserves to $15.5 billion.
An International Monetary Fund (IMF) mission will visit from February 25 to March 11 to discuss a $1 billion tranche under the Extended Fund Facility.
The country is considering extending bilateral cash deposits, relying on financial support from China, the UAE, and Saudi Arabia.
External public debt increased by 6% to $91.8 billion, primarily due to multilateral lenders.
Prime Minister Shehbaz Sharif raised concerns about the impact of external financing on national dignity.

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Story summary

Pakistan repaid a $700 million loan to the China Development Bank, lowering its foreign exchange reserves to $15.5 billion.
An International Monetary Fund (IMF) mission will visit from February 25 to March 11 to discuss a $1 billion tranche under the Extended Fund Facility.
The country is considering extending bilateral cash deposits, relying on financial support from China, the UAE, and Saudi Arabia.
External public debt increased by 6% to $91.8 billion, primarily due to multilateral lenders.
Prime Minister Shehbaz Sharif raised concerns about the impact of external financing on national dignity.