China Rolls Over $3.4 Billion in Commercial Loans to Pakistan, Boosting Foreign Exchange Reserves
Beijing's decision to roll over loans and refinance commercial debt is set to bolster Pakistan's foreign exchange reserves to $14 billion, meeting the IMF target.
KARACHI: In a move aimed at bolstering its foreign exchange reserves, China has rolled over $3.4 billion in loans to Islamabad.
This decision, coupled with recent commercial and multilateral lending, is expected to increase Pakistan’s foreign exchange reserves to $14 billion, according to a finance ministry source.
The rolled-over funds include $2.1 billion that had been held in Pakistan's central bank reserves for the past three years, as well as the refinancing of a $1.3 billion commercial loan which was repaid by Islamabad two months prior.
Additionally, Pakistan has secured $1 billion from Middle Eastern commercial banks and $500 million through multilateral financing.
The finance ministry source stated that these inflows align with the International Monetary Fund (IMF) target for Pakistan's foreign exchange reserves, which is set to exceed $14 billion by the end of the current fiscal year on June 30.
Authorities in Islamabad attribute the stabilization of the country’s economy to ongoing reforms under a $7 billion IMF bailout program.
The influx of loans and funding is crucial for bolstering Pakistan's low foreign reserves, as required by the IMF for the continuation of its financial assistance.
This decision, coupled with recent commercial and multilateral lending, is expected to increase Pakistan’s foreign exchange reserves to $14 billion, according to a finance ministry source.
The rolled-over funds include $2.1 billion that had been held in Pakistan's central bank reserves for the past three years, as well as the refinancing of a $1.3 billion commercial loan which was repaid by Islamabad two months prior.
Additionally, Pakistan has secured $1 billion from Middle Eastern commercial banks and $500 million through multilateral financing.
The finance ministry source stated that these inflows align with the International Monetary Fund (IMF) target for Pakistan's foreign exchange reserves, which is set to exceed $14 billion by the end of the current fiscal year on June 30.
Authorities in Islamabad attribute the stabilization of the country’s economy to ongoing reforms under a $7 billion IMF bailout program.
The influx of loans and funding is crucial for bolstering Pakistan's low foreign reserves, as required by the IMF for the continuation of its financial assistance.
