Islamabad: Minister of Finance Miftah Ismail on Thursday (June 02) announced that the inflow of USD 2.3 billion from China is expected to be released soon to support the foreign exchange reserves of Pakistan, news sources reported. The loan is part of the China-Pakistan agreement worth USD 4.2 billion.
According to reports, the finance minister stated in a Tweet from his official account that ‘the terms and conditions for refinancing of RMB 15 billion in deposits by Chinese banks (approximately USD 2.3 billion) have been approved, Inflow is expected shortly following routine approvals from both sides. This will contribute to the strengthening of our foreign exchange reserves.’ The financing was made available following the breakdown of USD 1 billion trench negotiations with the International Monetary Fund (IMF), which had put the government in economic distress.
Good News: The terms and conditions for refinancing of RMB 15 billion deposit by Chinese banks (about US$ 2.3 billion) have been agreed. Inflow is expected shortly after some routine approvals from both sides. This will help shore up our foreign exchange reserves.
According to the minister, the much-needed cash from China would assist in stabilising the market and provide relief to the strained economy. It is worth noting that international creditors have also halted loans during IMF discussions.
The country’s reserves have dipped below USD 10 billion, resulting in increased economic hardship. Furthermore, the IMF has advised the government to progressively eliminate fossil fuel and power subsidies in order to conserve much-needed reserves.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
