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KARACHI: Pakistan’s foreign exchange reserves increased by $405 million to $9.745 billion in the week ending June 30, the State Bank of Pakistan reported,
The total reserves held by the central bank increased by $393 million to $4.462 billion. The reserves held by banks increased by $12 million to $5.282 billion.
The central bank ascribed an increase in the foreign exchange reserves to the receipt of official inflows.
Pakistan paid China $1.3 billion in external debt last month, but Beijing refinanced the loan to the country. The month of June was the due date for Chinese commercial loans.
According to the schedule, Pakistan paid $300 million in debt to the Bank of China and $1 billion to the China Development Bank.
China has refinanced the $1.3 billion in maturing commercial loans that Pakistan requested be refinanced quickly. Of the total money, $1.3 billion was received last month.
Pakistan has signed a $3 billion standby agreement with the International Monetary Fund (IMF) to increase its dwindling foreign exchange reserves and avert default.
The reserves are expected to improve as a result of the IMF deal. The first tranche of $1.1 billion is expected to be received later this month after approval from IMF Board.
