LAHORE – China will lend around $2 billion to bolster Pakistan’s foreignexchange reserves and avert further depreciation of the rupee against thegreenback.
The *Financial Times* on Tuesday reported that two senior governmentofficials informed China would be providing Pakistan $2 billion forpreventing further devaluation of the rupee against the dollar and bolsterits dwindling forex reserves.
A senior government official In Islamabad said, “China’s promise toPakistan is an indication of their commitment to help us avoid a crisis. Ifthe rupee falls sharply and we need to prevent its slide, we can turn toChina.”
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According to the report, China isn’t officially announcing the financialsupport being extended by it to Pakistan as the government faces high debtrepayments, fiscal deterioration and sliding forex reserves.Moreover, an English daily last month had reported China doesn’t wantPakistan to highlight its help for bolstering the country’s foreignexchange reserves.
