ISLAMABAD: Cash-strapped Pakistan has received $1 billion from its close ally China to support its critically low foreign reserves amidst the uncertainty to revive a stalled International Monetary Fund loan.
The State Bank of Pakistan (SBP) on Friday night confirmed having received the amount from China without sharing any other details about it. It would add to the reserves which had fallen to almost $3.9 billion in recent weeks.
Earlier, finance minister Ishaq Dar said Pakistan had paid back $1 billion to China last Monday against a due amount of $1.3 billion and it was hoped that the amount would be returned.
Pakistan’s economy is tethering on the verge of default as the IMF is pushing the county to its limits to fulfil demands – which Islamabad insists had been already met – to provide the remaining $2.5 billion out of a bailout package of $6.5 billion agreed in 2019.
The entire amount is unlikely to be paid as the programme is ending on June 30 but Pakistan is pushing for a tranche of $1.1 billion as a symbolic gesture of endorsement of its policies by the Washington-based fund.
The State Bank of Pakistan (SBP) on Friday night confirmed having received the amount from China without sharing any other details about it. It would add to the reserves which had fallen to almost $3.9 billion in recent weeks.
Earlier, finance minister Ishaq Dar said Pakistan had paid back $1 billion to China last Monday against a due amount of $1.3 billion and it was hoped that the amount would be returned.
Pakistan’s economy is tethering on the verge of default as the IMF is pushing the county to its limits to fulfil demands – which Islamabad insists had been already met – to provide the remaining $2.5 billion out of a bailout package of $6.5 billion agreed in 2019.
The entire amount is unlikely to be paid as the programme is ending on June 30 but Pakistan is pushing for a tranche of $1.1 billion as a symbolic gesture of endorsement of its policies by the Washington-based fund.