China is going to lend $2 billion to the country as balance of payments support. According to a report in international media, China will lend around $2 billion to bolster Pakistan’s foreign exchange reserves and avert further depreciation of the rupee against the US dollar.
The Financial Times, quoting two senior government officials, said China will be providing Pakistan with $2 billion to stabilize its currency and bolster its dwindling forex reserves.
The official said that China’s promise to Pakistan is an indication of their commitment to helping the country avoid a crisis.
According to the report, China isn’t officially announcing the financial support for Pakistan as the government faces high debt repayments, fiscal deterioration and sliding forex reserves.
Recently, Saudi Arabia and UAE have announced to extend support to Pakistan in a bid to avoid a possible balance of payment crisis.
Both countries are expected to deposit $3 billion in the State Bank of Pakistan to shore up Pakistan’s foreign exchange reserves.
The countries are also expected to supply oil to Pakistan on a deferred payment facility for three years as well.
Via: Financial Times