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Pakistan receives USD 2.1 billion from China

Pakistan on Monday received USD 2.1 billion from its all-weather ally China to help it in making international payments mainly on import and debt repayment counters.

Islamabad: Pakistan on Monday received USD 2.1 billion from its all-weather ally China to help it in making international payments mainly on import and debt repayment counters.

Finance Ministry Spokesperson Khaqan Hassan Najeeb said the funds deposited in the State Bank of Pakistan would strengthen the stability of the country.

"Deposit of RMB 15Bn equivalent to USD 2.1Bn received in State Bank of Pakistan account on March 25th 2019 from China," Najeeb tweeted.

He said government was following a successful multipronged strategy to ensure stability in balance of payment including curtailing current account (deficit) improving remittances and ensuring adequate foreign exchange financing.

"Foreign exchange reserves increase to comfortable level," he said.

The SBP reserves stood at USD 8.84 billion as on March 15, 2019, according to the central bank's latest weekly report.

The latest deposits came from Beijing are expected to boost the SBP reserves into double digit after a gap of almost one year.

Pakistan has so far received a total of USD 9.1 billion in financial assistance packages from friendly countries during the current fiscal year to date,  including USD 4.1 billion from China, USD 3 billion from Saudi Arabia and USD 2 billion from United Arab Emirates (UAE). It is also negotiating with the IMF to get secure funding.