Search
Close this search box.

Pakistan Reaches $2.3 Billion Refinancing Agreement With Chinese Banks

Finance Minister Miftah Ismail Thursday said that the terms and conditions for refinancing of $2.3 billion deposit by Chinese banks (about RMB 15 billion) have been agreed.

 “The terms and conditions for refinancing of RMB 15 billion deposit by Chinese banks (about US$ 2.3 billion) have been agreed. Inflow is expected shortly after some routine approvals from both sides,” the finance minister said in a tweet.

Good News: The terms and conditions for refinancing of RMB 15 billion deposit by Chinese banks (about US$ 2.3 billion) have been agreed. Inflow is expected shortly after some routine approvals from both sides. This will help shore up our foreign exchange reserves.

— Miftah Ismail (@MiftahIsmail) June 2, 2022

The minister added that the inflow will help shore up the foreign exchange reserves.

The news comes as a major relief as the country remains embroiled in an uncertain economic condition due to the delay in the revival of the bailout program of the International Monetary Fund.

After the most recent round of talks, the global lender said that there have been deviations from the policies agreed in the last review, partly reflecting the fuel and power subsidies announced by the government.

In recent days the government has hiked the prices of petroleum products and electricity, two of the key IMF demands, in a bid to unlock the $1 billion tranche.

The foreign exchange reserves held by the State Bank of Pakistan (SBP) hit a 128-weeks low of $9.7 billion on May 27, 2022.

The deposit from the Chinese banks will give much needed support to the country’s reserves. It will also lend some support to the rupee which has struggled against the US Dollar in recent months.

Source: Pro Pakistani

Search Keywords

Search