The Ministry of Finance has announced that the State Bank of Pakistan (SBP) will receive a loan worth $2.1 billion from China by Monday.
The Ministry of Finance has completed all procedural formalities with the Chinese counterpart for the loan facility of yuan 15 billion, equivalent to $2.1 billion, spokesman of the ministry, Dr Khaqan Najeeb confirmed.
He said the funds will be deposited in the State Bank of Pakistan’s (SBP) account by Monday (March 25).
This loan facility will further strengthen the country’s forex exchange reserves and ensure Balance of Payment stability, he added.
Following a meeting in Beijing between Chinese Premier Li Keqiang and Prime Minister Imran Khan in November 2018, China had assured that it was willing to offer assistance to Pakistan to help it weather its current fiscal woes.
In February this year, in response to a Financial Times report which said that China had pledged to lend at least $2 billion to Pakistan to shore up its foreign exchange reserves and prevent further devaluation of the rupee against the dollar, Chinese foreign ministry spokesman Lu Kang had tentatively acknowledged that it was extending financial assistance to help Pakistan.
Earlier, on March 12, Pakistan had received $1 billion from United Arab Emirates (UAE), which further improved its balance-of-payment situation.
Moreover, the country’s foreign exchange reserves have surged to $15.7 billion after receiving inflows of $1 billion from United Arab Emirate on the account of cash financial support.