China & UAE to Deposit $5 Billion in Pakistan’s Foreign Exchange Reserves: Report

China is expected to deposit $2 billion in Pakistan reserves during the month of December and more importantly the economic diplomacy with the UAE is also going to show some results as UAE is likely to provide financial assistance as well.

According to a report in a local newspaper, Pakistan is likely to receive financial assistance from China and UAE this month.

A senior official, privy to the development, told the local newspaper that during the month of January 2019, the country is most likely to attain a $6 billion facility.

He further added that “UAE will also deposit $3 billion in Pakistan’s exchange reserves, but in installments, and will also extend an oil facility of $3 billion for deferred payment too.”

China will deposit $2 billion and will most likely do it in one go. However, he said, China wants Pakistan not to highlight its assistance for strengthening the reserves.

He further explained saying that apart from that, Pakistani authorities are also in process to finalize the purchase of 15 billion RMBs (Yuan) at a commercial rate.

The expected relief from China in December and from the UAE in January next year will provide huge comfort to the PTI government.

Moreover, the official said that the latest statement by Asad Umar about Pakistan not being in a hurry for the IMF bailout package indicates that impending relief from China and UAE to support the foreign reserves is on the cards.

The official added that Asad Umar was aware that things are moving with China and UAE in a positive trajectory and behind-the-scenes talks with both the countries have matured indicating that China and UAE are all set to come forward to bail out Pakistan from the current economic morass.

Pakistan has already got $2 billion out of $3 billion promised by Saudi Arabia to strengthen the foreign exchange reserves.

According to State Bank of Pakistan, the country will get the remaining $1 billion from Saudi Arabia in the month of January 2019. Apart from that, Pakistan has started availing the oil facility of $3 billion on defer payment.

However, the official said that Pakistan’s authorities are still in touch with IMF for a $6-7 billion bailout package.

Via: The News

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