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State Bank Of Pakistan SBP

State Bank receives $2.1 billion from China

ISLAMABAD: The State Bank of Pakistan has received $2.1 billion from China today.

The finance ministry spokesperson, Dr Khaqan Najeeb Khan, confirmed the deposit and said it will help contain the balance of payment position and boost the country’s foreign exchange reserves.

“The financial support package for Pakistan is currently being worked out … it will be more than what extended by Saudi Arabia in terms of financial grant,” Deputy Head of Mission at Chinese Embassy Zhao Lijian told reporters in November last year.

The government was able to secure back to back aid packages from Saudi Arabia and the UAE during Prime Minister Imran Khan’s visits to these countries last year.

The Saudi government has dispatched the $3 billion it had pledged in support of our foreign exchange reserves. The UAE, on the other hand, has sent $2 billion and will send another $1 billion soon.

As Pakistan started receiving these loans, the dollar became stable. However, the current level of reserves, $8.8 billion, is still below the sustainable level. That is it is not enough to cover three months of import payments.

 

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M M Alam

M. M. Alam is a Pakistan-based working journalist since 1981. Karachi University faculty gold medalist Alam began his career four decades ago by writing for Dawn, Pakistan’s highest circulating English daily. He has worked for region’s leading publications, global aviation periodicals including Rotors (of USA) and vetted New York Times as permanent employee of daily Express Tribune. Alam regularly covers international aviation and defense-related events including Salon Du Bourget (France), Farnborough (United Kingdom), Dubai (UAE). Alam has reported thousands of events and interviewed hundreds of people in Pakistan, UAE, EU, UK and USA. Being Francophone Alam also coordinates with a number of French publications.