The State Bank of Pakistan (SBP) announced that the nation’s foreign exchange reserves were increased by US$2.071 billion as a result of a rollover loan from Chinese banks, according to ARY NEWS.
As of June 24, the total liquid foreign reserves held by Pakistan were US$16.1956 billion. The central bank explained that the reserves held by the State Bank of Pakistan amounted to US$10.309 billion, followed by commercial bank reserves at US$5.8866 billion.
It shared that during the week ended on June 24, the SBP received proceeds of CDB loan amounting to RMB 15 billion. “After accounting for external debt repayment, SBP’s reserves increased by US$2.071 billion.”
On June 24, Finance Minister Miftah Ismail confirmed that the State Bank of Pakistan (SBP) has received a Chinese consortium loan of RMB 15 billion ($2.3 billion) to aid the depleting foreign exchange reserves.
Taking to Twitter, the finance minister wrote: I am pleased to announce that a Chinese consortium loan of RMB 15 billion (roughly $2.3 billion) has been credited into the State Bank of Pakistan’s account today.
Miftah Ismail noted that the loan received from China has increased the country’s foreign exchange reserves.
In light of recent events, it is important to note that Pakistan had previously signed a loan agreement with a Chinese consortium of banks to help ease the depleting of foreign exchange reserves and depreciation of the local currency.
“We thank the Chinese government for facilitating this transaction,” wrote the finance minister on his Twitter account.