Prime Minister Shehbaz Sharif said that the Exim Bank of China has rolled over a $600 million loan, helping Pakistan’s cash-strapped foreign exchange reserves.
During his speech at the Prime Minister’s Youth Sports Initiative’s Islamabad launch ceremony, the prime minister said he also promised to increase funding for youth development if he wins re-election.
“Yesterday, Exim Bank of China rolled over $600 million to Pakistan, which increased our foreign currency reserves,” According to PM Shehbaz Sharif, friendly countries’ assistance is boosting economic indicators.
However, he did not say anything about when this payment was due.
The prime minister stated last week that this was in addition to the more than $5 billion in loans that Pakistan’s steadfast friend China had extended for Pakistan over the previous three months. This helped Pakistan avoid default as talks to obtain the IMF bailout dragged on.
After the International Monetary Fund (IMF) approved a $3 billion rescue package and transferred the first tranche of $1.2 billion under a nine-month stand-by agreement, the country displayed signs of economic stability.
Pakistan received $2 billion from Saudi Arabia and $1 billion from the United Arab Emirates earlier this month, after both countries were reassured by the deal Islamabad and the IMF reached at the end of June. Pakistan had previously been on the verge of a sovereign debt default.
Last Thursday, the State Bank of Pakistan said that Pakistan’s foreign exchange reserves held by the central bank improved marginally by $61 million to stand at $4.524 billion in the week ended July 7.