China’s help keeps Pakistan’s foreign exchange reserve levels stable

Islamabad: Pakistani Ministry of Economic Affairs Division has said that with the help of China, Pakistan had financing arrangements in place to meet its re-payment loan obligations during the Financial Year 2022-23 and is expecting improvement in its foreign exchange reserve levels.

A statement issued by the ministry says: “It is elucidated that the total amount received by Pakistan till 30th April 2023 is US$ 15.4 billion, which additionally includes the rollover of friendly countries’ deposits amounting to US$ 6.0 bn (i.e. US$ 3.0 bn each from China and Saudi Arabia), and re-financing of Chinese loan of US$ 1.3 bn, recorded as foreign currency denominated domestic debt.”

It added: “Government of Pakistan has financing arrangements in place to meet its re-payment obligations during the FY 2023 and is expecting improvement in its foreign exchange reserve levels.”

Recently China had rolled over its safe deposit of $2 billion with Pakistan on the existing terms as Islamabad’s foreign exchange reserves escaped further decline.

Beijing rolled over the safe deposit with Pakistan for a year. Federal Finance Minister Ishaq Dar said that China has granted a rollover of YS $2 billion deposits to Pakistan.

Ishaq Dar informed Taft the rollover of US $2 billion State Administration of Foreign Exchange (SAFE) deposits will be for one year. The finance minister said it will certain boost the forex reserves of the State Bank of Pakistan.