Pakistan will borrow 60 Crore ($600 million) from China to boost its declining foreign currency reserves that have exhausted by $1.7 billion since when expiry of International Monetary Fund programme has happened.
In past three years, this is third time, when Pakistan Muslim League-Nawaz government has opted to request a China to boost its foreign currency reserves. Before this, Saudi Arabia had aided $1.5 billion to Pakistan in year 2014.
In this regard a meeting held which included State Bank of Pakistan Governor Ashraf Wathra, Finance Minister Ishaq Dar and Finance Secretary Tariq Bajwa.
As per the Sources loan is anticipated to be given for three years of period charring interest rate from 3.1% and 3.2% and load amount will be disbursed in this month. After this fresh borrowing, Chinese input in Pakistan’s official foreign currency reserves held by the SBP will increase to $1.3 billion.