China has given a new loan of $ 2.3 billion to Pakistan, which has reached the verge of financially poor. Pakistani Finance Minister Mifta Ismail said that a loan of $ 2.3 billion from a consortium of Chinese banks has been deposited in the account of State Bank of Pakistan. This loan from China will help boost Pakistan’s depleting foreign exchange reserves.

He tweeted that I am happy to announce that the debt of the Chinese consortium of RMB 15 billion (about $ 2.3 billion) has been deposited in the account of the State Bank of Pakistan (SBP) today, thereby reducing our foreign exchange. The stock has increased. Pakistan had signed a $2.3 billion commercial loan agreement with China two days ago. He also thanked the Chinese government for facilitating the transaction.

Foreign Minister Bilawal Bhutto-Zardari also thanked the Chinese leadership. He said the people of Pakistan are grateful for the continued support of our evergreen friends. Since February, Pakistan had been pleading for loans to maintain its rapidly depleting foreign exchange reserves. However, the IMF had put many conditions for giving loans to Pakistan. After which Pakistan had to turn to its evergreen friend China.

The value of the Pakistani rupee has been falling continuously against the dollar due to the widening trade deficit and rapid withdrawal of money. The deadline to repay the loan has put tremendous pressure on the State Bank of Pakistan’s liquid forex reserves. Due to this reason, like Pakistan, the foreign exchange reserves fell by more than $ 5.1 billion to $ 11.3 billion from February to the last week of April. According to Pakistan’s central bank, their foreign exchange reserves stood at $8.99 billion on June 10, from $14.21 billion on June 17. During the visit of former Prime Minister Imran Khan to China in February, Pakistan had sought a support package of about $ 20 billion.

This includes repayment of $4 billion of old debt, an expansion of currency swaps from the current $4.5 billion to $10 billion, and $5.5 billion in additional financial assistance. China had given a loan of about $2 billion to Pakistan two months ago. PLC/GT

LEAVE A REPLY

Please enter your comment!
Please enter your name here