Finance Minister Ishaq Dar said Pakistan expects further inflow of a loan facility from China, while he shared economic figures under the previous Pakistan Tehreek-e-Insaf (PTI) government and blamed Imran Khan for the country’s current economic state.
In a news conference on Friday, Dar also declared that Pakistan would not stop making payments to its international creditors. This statement comes amid growing worries over Pakistan’s capacity to meet obligations because of the country’s small foreign exchange reserves.
China has renewed a facility, according to which Pakistan anticipates receiving an additional inflow of $500 million over the next days and another $500 million later this month, the finance minister stated.
On back of loan from China, SBP-held foreign exchange reserves increase $556mn, now stand at $3.81bn
“Pakistan has made payments of around $2 billion to China Development Bank and ICBC (Industrial and Commercial Bank of China) and $3.5 billion have been given to banks in other countries,” he said.
Although debt is frequently extended, its stock does not go down. We are lowering our debt load, he declared. “Last night, formalities with ICBC were finished. We gave it back $1.3 billion, and since it was renewed, we will get the money back in installments.
“We repaid $1.3 billion in three installments of $500,000,000, $500,000,000, and $300,000,000. It will be returned to us in the same manner. In a few days, Pakistan will receive $500 million. This could arrive on Monday. Then, in ten days, we will receive an additional $500 million.
Recently, Pakistan also secured a $700 million loan from the China Development Bank. This loan assisted in increasing the country’s central bank’s foreign exchange reserves to just over $3.8 billion. Less than one month’s worth of import cover is still level.
Dar stated that making “loose” comments about the economy has an impact on the capital and financial markets, referring to PTI and its party chairman Imran.
He added that Pakistan had reached this situation due to poor management and governance.
“Flood caused massive losses. Inflation during July 2022 -February 2023 was 26% and in this, the core inflation stood at 19%. The rest is imported inflation. We cannot avoid it due to floods.”
Dar continued by comparing economic success under the PTI government, saying that the opposition has not yet done much to advance Pakistan’s situation.
“But Pakistan will escape the economic quagmire. We are making repayments to bilateral and multilateral lenders. We have made payments beyond our capacity.”
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