Finance Minister Ishaq Dar has asked the Chinese ambassador for help in securing the rollover of $2 billion in State Administration of Foreign Exchange (SAFE) deposits that are due in March 2023 in an effort to fulfil the financial requirements under the IMF programme.
Pakistan must ensure a rollover of $2 billion in SAFE deposits for the current fiscal year in order to meet the IMF’s requirement.
The change occurred when US Secretary of State Antony Blinken urged Pakistan to ask its key ally China for debt forgiveness in light of the devastating floods that have affected the whole nation.
After speaking with Foreign Minister Bilawal Bhutto Zardari in Washington on September 16, Blinken made the comments.
Chinese Ambassador Nong Rong met with Finance Minister Ishaq Dar on Friday in the Finance Division, according to a formal statement released by the Ministry of Finance, The News reported.
He informed the ambassador of the damage done by Pakistan’s exceptional floods, including the costs to the country’s overall economy, infrastructure, agriculture, lives, and property.
He also expressed appreciation for the help given by the Chinese leadership in refinancing the syndicate facility for RMB 15 billion ($2.24 billion) provided to Pakistan. He further requested the ambassador’s assistance in arranging the rollover of $2 billion in SAFE China deposits in March 2023.
It is important to note that the State Bank of Pakistan’s (SBP) holdings of foreign exchange reserves for the nation decreased by 4.07% in accordance with the recent trend.
According to data issued by the SBP on Thursday, as of September 23, the foreign exchange reserves held by the SBP were $8,005.9 million, a decrease of $341 million from $8,346.4 on September 16.
In all, the nation maintained $13,761.9 million in liquid foreign currency reserves, including net reserves held by banks other than the SBP.
There were $5,756 million in net reserves held by banks. Repayment of external debt was a major factor, according to the central bank, in the fall.
Pakistan has fewer than two months’ worth of import coverage with its present level of foreign exchange reserves.
The Pakistani rupee has been under intense pressure due to a critical level of reserves, making it the worst-performing currency this month.
