Pakistan receives $2.1 billion from China
The financial support from China will ensure balance of payment stability.
ISLAMABAD (Dunya News) – State Bank of Pakistan (SBP) on Monday received US$2.1 billion from China, which would ensure balance of payment stability.
In a tweet, Finance Ministry Spokesman Dr Khaqan Najeeb said that the funds deposited in the State Bank of Pakistan and it would also strengthen the country s foreign exchange reserves position.
The financial support from China will ensure balance of payment stability.
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.
