Pakistan’s foreign exchange reserves are said to be increased to $17 billion following the transaction.
Islamabad (Pakistan Point News – 25th March, 2019) Pakistan’s all-weather friend China has transferred $2.1 billion to State Bank of Pakistan.
The State Bank of Pakistan and Bank of China had signed an agreement, as per which China has agreed to loan $2.1 billion to Pakistan.
Pakistan’s foreign exchange reserves are said to be increased to $17 billion following the transaction.
China had extended its cooperation to strengthen Pakistan’s reserves during Prime Minister Imran Khan’s visit to Beijing.
The financial support signals deepening economic ties between China and Pakistan even as Islamabad is negotiating with the IMF for a potential $7bn to $8bn loan.
Finance Minister Asad Umar said the country’s economy was improving and it did not need now to surrender before the tough condition of the IMF to receive loans.
Pakistan’s foreign reserves, at $7.3bn, have dropped to about one and a half months of import cover, regarded as a critically low level, said economists.
After decades of close military co-operation, Beijing has been stepping up financial support for Pakistan, with Chinese state-backed banks lending $4bn to Islamabad in the year ending June 2017.
