Pakistan receives $2.3b from China

ISLAMABAD   –   Pakistan has received much needed $2.3 bil­lion from China on Friday, which would build the country’s depleting foreign ex­change reserves.

“I am pleased to announce that Chi­nese consortium loan of RMB 15 billion (roughly $2.3 billion) has been credited into the SBP account today (Friday), in­creasing our foreign exchange reserves,” said Federal Minis­ter for Finance and Revenue Miftah Ismail on Twitter. Ac­cording to officials, China has agreed to reduce the interest rate on loan by one percent to 1.5 percent. The inflow of $2.3 billion would build the country’s foreign exchange reserves, which are deplet­ing due to repayment against previous loans and financ­ing of current account deficit. During the week ended on 17 June 2022, the State Bank of Pakistan (SBP) reserves de­creased by $748 million to $8.237 billion mainly due to external debt repayments. The total liquid foreign re­serves held by the country stood at $14.210 billion in­cluding $5.972 billion foreign reserves held by commercial banks. With the Chinese in­flow, the SBP’s held reserves would increase t $10.537 bil­lion. Apart from giving $2.3 billion, China has also decid­ed to rollover its safe deposits — which were due in June-Ju­ly. “I would like to thank China for this initiative even when Pakistan did not request them to do so,” the Finance Minister said the other day.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More