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Business

REUTERS
July 1, 2018
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China lends $1 billion to Pakistan to boost FX reserves

ISLAMABAD: China has lent Pakistan $1 billion to boost the country’s plummeting foreign currency reserves, two sources in Pakistan’s finance ministry told Reuters.

Pakistan’s foreign currency reserves plunged to $9.66 billion last week from $16.4 billion in May 2017.

The lending is the outcome of negotiations for loans worth $1-$2 billion the two sources told Reuters.

“Yes, it is with us,” said one finance ministry source, in reference to the Chinese money. The second source added that the “matter stands complete”.

The finance ministry spokesperson did not respond to a Reuters request for comment.

With the latest loan, China’s lending to Pakistan in this fiscal year ending in June is set to breach $5 billion.

In the first 10 months of the fiscal year China lent Pakistan $1.5 billion in bilateral loans, according to a finance ministry document seen by Reuters. During this period Pakistan also received $2.9 billion in commercial bank loans mostly from Chinese banks, ministry officials told Reuters.

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