International

In order to boost foreign exchange reserves, China to provide $2.5 billion loan to Pakistan

In order to boost official foreign exchange reserves of Pakistan, China has agreed to provide USD 2.5 billion as loans, reported the Express Tribune. 

According to the report, country’s USD 8.12 billion reserves, which are below the minimum level that the International Monetary Fund (IMF) and the World Bank (WB) prescribe, are sufficient to cover only seven weeks of imports.

“Beijing will place the $2.5 billion in deposits with the central bank,” a top government functionary told The Express Tribune. With the anticipated $2.5 billion deposits, China’s contribution in this fiscal year alone would surge to $4.5 billion.

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