Pakistan to receive $2.1bn from China today
As Pakistan started receiving these loans, the dollar became stable.
(Web Desk) – Pakistan on Monday will receive $2.1 billion loan from China, Radio Pakistan reported, that will strengthen country’s balance of payment issue.
Dr Khaqan Najeeb Khan, the finance ministry spokesperson, stated that “all procedural formalities” for the transfer of loan have been completed.
In a tweet, Najeeb said that the funds would be deposited in the State Bank of Pakistan (SBP), and it would also strengthen foreign exchange reserves position.
In November, the Financial Times reported that China had pledged to lend at least $2bn to Pakistan to shore up its foreign exchange reserves and prevent further devaluation of the rupee against the dollar.
“The financial support package for Pakistan is currently being worked out … it will be more than what extended by Saudi Arabia in terms of financial grant,” Deputy Head of Mission at Chinese Embassy Zhao Lijian told reporters in November last year.
The government was able to secure back to back aid packages from Saudi Arabia and the UAE during Prime Minister Imran Khan’s visits to these countries last year.
The Saudi government has dispatched the $3 billion it had pledged in support of our foreign exchange reserves. The UAE, on the other hand, has sent $2 billion.
As Pakistan started receiving these loans, the dollar became stable.
He, however, clarified that the discussions with international partners do not entail any target level of exchange rate.
The spokesman said that focus was on further strengthening the exchange rate regime and keeping it consistent with the evolving macroeconomic fundamentals of the economy.
He said the news about fixing exchange rate target was baseless and unfounded.
