China To Transfer $2.1 Billion To Pakistan

Sources in Finance Ministry said that the amount will be transferred to the State Bank of Pakistan on Monday.

Islamabad (UrduPoint / Pakistan Point News – 21st March, 2019) China will transfer $2.1 billion to State Bank of Pakistan.

The State Bank of Pakistan and Bank of China have signed an agreement, as per which China has agreed to loan $2.1 billion to Pakistan.

Sources in Finance Ministry said that the amount will be transferred to the State Bank of Pakistan on Monday.

All the relevant paperwork has been completed in this regard, media reports said.

Pakistan’s foreign exchange reserves will increase to $17 billion following the transaction.

The expected financial support signals deepening economic ties between China and Pakistan even as Islamabad is negotiating with the IMF for a potential $7bn to $8bn loan.

Pakistan’s foreign reserves, at $7.3bn, have dropped to about one and a half months of import cover, regarded as a critically low level, said economists.

After decades of close military co-operation, Beijing has been stepping up financial support for Pakistan, with Chinese state-backed banks lending $4bn to Islamabad in the year ending June 2017.