Islamabad: China has once again come to the fore amid cash crunch Pakistan as finance Minister Miftah Ismail said on Thursday that Chinese banks have agreed to refinance his country with a $2.3 billion fund, which “will shore up Pakistan’s foreign exchange reserves.”
Finance Minister Miftah Ismail tweeted, “Terms and conditions have been agreed for the refinancing of deposits of $15 billion by Chinese banks (approximately $2.3 billion).”
“The investments are expected soon after some regular approvals from both sides. This will help in increasing our foreign exchange reserves,” he said.
Pakistan’s foreign exchange reserves are under severe pressure during the week ended May 6 and have declined by $190 million to $10.308 billion. State Bank Of Pakistan (SBP).
The country is heavily dependent on foreign loans but getting them is not easy. Data from the Ministry of Economic Affairs earlier this month showed that Pakistan received only $248 million in foreign debt in April, including $100 million worth of oil on deferred payments from Saudi Arabia.
looking at pakistan International Monetary Fund (IMF) to reinstate the $6 billion package agreed in 2019. Till now half of the promised money had been given. Once the differences between the two sides are resolved, Pakistan will get an immediate loan of $1 billion from the IMF.
The economy is collapsing and with political instability largely due to protests from the former prime minister Imran KhanIf quick steps are not taken, the danger of Pakistan going the Sri Lankan route is increasing.
Before being deposed, Khan had requested the Chinese prime minister li keqiang To refinance the RMB 15 billion loan given to the country three years ago for a further three years on existing terms and conditions.
According to official sources, the country will have to pay $ 20-21 billion in the next fiscal year starting July 1.
Finance Minister Miftah Ismail tweeted, “Terms and conditions have been agreed for the refinancing of deposits of $15 billion by Chinese banks (approximately $2.3 billion).”
“The investments are expected soon after some regular approvals from both sides. This will help in increasing our foreign exchange reserves,” he said.
Pakistan’s foreign exchange reserves are under severe pressure during the week ended May 6 and have declined by $190 million to $10.308 billion. State Bank Of Pakistan (SBP).
The country is heavily dependent on foreign loans but getting them is not easy. Data from the Ministry of Economic Affairs earlier this month showed that Pakistan received only $248 million in foreign debt in April, including $100 million worth of oil on deferred payments from Saudi Arabia.
looking at pakistan International Monetary Fund (IMF) to reinstate the $6 billion package agreed in 2019. Till now half of the promised money had been given. Once the differences between the two sides are resolved, Pakistan will get an immediate loan of $1 billion from the IMF.
The economy is collapsing and with political instability largely due to protests from the former prime minister Imran KhanIf quick steps are not taken, the danger of Pakistan going the Sri Lankan route is increasing.
Before being deposed, Khan had requested the Chinese prime minister li keqiang To refinance the RMB 15 billion loan given to the country three years ago for a further three years on existing terms and conditions.
According to official sources, the country will have to pay $ 20-21 billion in the next fiscal year starting July 1.