Pakistan receives $600 mn from China to stabilise its economy, says PM Shehbaz Sharif
Pakistan secured a $3 billion bailout from the IMF on June 30, with an initial upfront instalment of approximately $1.2 billion already disbursed
- Jul 19, 2023,
- Updated Jul 19, 2023 2:53 PM IST
Pakistan's finances got further boost with cash-strapped country getting an additional loan of $600 million from its long-standing ally, China, reported Dawn on Tuesday.
Pakistan’s Prime Minister Shehbaz Sharif said that the loan aims to bolster the country’s foreign exchange reserves, which already got a boost due to $3-billion bailout package from International Monetary Fund (IMF).
This loan comes on top of the substantial financial support provided by China in the past three months. Beijing has rolled over $5 billion in loans to Pakistan during this period, helping the debt-ridden nation avoid a potential default as negotiations for the IMF bailout continued.
Pakistan secured a $3 billion bailout from the IMF on June 30, with an initial upfront instalment of approximately $1.2 billion already disbursed.
Prime Minister Sharif mentioned that the rollover loan of $600 million has been provided by the Exim Bank of China, thus increasing the country's foreign exchange reserves.
While acknowledging the increasing foreign exchange reserves, Prime Minister Sharif expressed the desire to generate income rather than relying solely on loans.
Last week, Pakistan also received a deposit of $2 billion from the Kingdom of Saudi Arabia.
“I would like to especially thank my brother Saudi Crown Prince & Prime Minister His Royal Highness Mohammed bin Salman for ensuring this financial support to Pakistan,” said Sharif in a tweet after receiving the receiving the aid from Saudi Arabia.
In positive news for Pakistan's economy, the State Bank of Pakistan reported a surplus of $334 million in the current account for the month of June. This surplus indicates a positive balance between the country's exports and imports.
The financial support from the IMF, Chinese loans, as well as the $2 billion from Saudi Arabia and $1 billion from the UAE following the IMF agreement, have collectively contributed to stabilising Pakistan's economy, as noted by Finance Minister Ishaq Dar.
(Inputs from PTI)
Pakistan's finances got further boost with cash-strapped country getting an additional loan of $600 million from its long-standing ally, China, reported Dawn on Tuesday.
Pakistan’s Prime Minister Shehbaz Sharif said that the loan aims to bolster the country’s foreign exchange reserves, which already got a boost due to $3-billion bailout package from International Monetary Fund (IMF).
This loan comes on top of the substantial financial support provided by China in the past three months. Beijing has rolled over $5 billion in loans to Pakistan during this period, helping the debt-ridden nation avoid a potential default as negotiations for the IMF bailout continued.
Pakistan secured a $3 billion bailout from the IMF on June 30, with an initial upfront instalment of approximately $1.2 billion already disbursed.
Prime Minister Sharif mentioned that the rollover loan of $600 million has been provided by the Exim Bank of China, thus increasing the country's foreign exchange reserves.
While acknowledging the increasing foreign exchange reserves, Prime Minister Sharif expressed the desire to generate income rather than relying solely on loans.
Last week, Pakistan also received a deposit of $2 billion from the Kingdom of Saudi Arabia.
“I would like to especially thank my brother Saudi Crown Prince & Prime Minister His Royal Highness Mohammed bin Salman for ensuring this financial support to Pakistan,” said Sharif in a tweet after receiving the receiving the aid from Saudi Arabia.
In positive news for Pakistan's economy, the State Bank of Pakistan reported a surplus of $334 million in the current account for the month of June. This surplus indicates a positive balance between the country's exports and imports.
The financial support from the IMF, Chinese loans, as well as the $2 billion from Saudi Arabia and $1 billion from the UAE following the IMF agreement, have collectively contributed to stabilising Pakistan's economy, as noted by Finance Minister Ishaq Dar.
(Inputs from PTI)