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Pakistan to receive $2.5b loan from China

The new value of the dollar has reached 182 rupees 30 paise. (Photo: Pixa Bay)

ISLAMABAD: Pakistan will receive $2.5b loan from China in June, finance ministry official confirmed.

The two countries have concluded the negotiations on the commercial loan and a formal agreement is expected in June.

Addressing a press conference, Finance Minister Miftah Ismail confirmed the development, adding that the country would soon hear good news from China.

According to the finance ministry officials, the loan would help to shore up Pakistan’s foreign exchange reserves.

Read more: ECC approves importing 3 million tonnes wheat

Pakistan’s total foreign exchange reserves fell to $16.14 in the week that ended May 20, according to the data shared by the State Bank of Pakistan.

Out of these, the reserves with the central bank were $10.08b, down from $10.16b a week before. The commercial bank’s reserves went up by $63m from $5.99b to $6.06b.

Pakistan is facing a balance of payment crisis with rising trade deficit and depleting reserves. The country is trying to secure funds from multilateral agencies and bilateral countries to shore up the reserves. Earlier this week, Saudi Arabia announced the extension of $3 billion deposit to Pakistan.

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