China agreed to grant $ 2.5 billion in loans to Pakistan to reduce the fall in foreign exchange reserves, which is insufficient to cover even two months of imports, even after borrowing $ 4 billion from Saudi Arabia and the United Arab Emirates. received According to a report in a local English newspaper.
According to the report, a senior official said China had agreed to deposit $ 2.5 billion in central bank deposits.
China Agreed To Grant $ 2.5 Billion In Loans To Pakistan
Previously, China also deposited $ 2 billion in the state bank of Pakistan. In the last five years, China has become Pakistan’s greatest savior in times of economic crisis. With the expected deposits of $ 2.5 billion, China’s contribution alone in the financial year will increase to $ 4.5 billion, according to the report.
Earlier, Prime Minister Imran Khan visited China, Saudi Arabia and the United Arab Emirates to organize emergency loans to avoid a threatening standard.
Pakistan finally received $ 14.5 billion from these three countries, closing the external financial gap of the current fiscal year, according to the report.
This follows a financial package of $ 6 billion agreed with Saudi Arabia. This includes a $ 3 billion loan that was raised at an interest rate of 3.18%.
It included a $ 3 billion deferred oil payment facility in Pakistan to manage the oil import account.
The governor of Pakistan’s state bank (PAS) Tariq Bajwa said on Wednesday that the procedure for the $ 3 billion loan for deferred oil payments was finalized last week and that an agreement will be signed on February 16 during the visit of the crown prince of the Saudi crown Mohammad. bin salman
The UAE agreed to provide $ 3 billion in interest rates to around 3% and the first bank received the first tranche of $ 1 billion last Thursday.
However, an oil installation of $ 3.2 billion in deferred payment is waiting.
Even after loans were received from the two Middle East countries, gross official foreign exchange reserves remained at only $ 8,120 million on December 25, according to SBP governors.
The report said that the reserves are below the minimum level prescribed by the International Monetary Fund and the World Bank. As a result, the World Bank and the Asian Development Bank do not grant loans for budget financing.
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