ISLAMABAD: China has lent Pakistan $1 billion to boost the country’splummeting foreign currency reserves, two sources in Pakistan’s financeministry told Reuters.

Pakistan’s foreign currency reserves plunged to $9.66 billion last weekfrom $16.4 billion in May 2017.

The lending is the outcome of negotiations for loans worth $1-$2 billionthe two sources told Reuters.link#_>

“Yes, it is with us,” said one finance ministry source, in reference to theChinese money. The second source added that the “matter stands complete”.

The finance ministry spokesperson did not respond to a Reuters request forcomment.

With the latest loan, China’s lending to Pakistan in this fiscal yearending in June is set to breach $5 billion.

In the first 10 months of the fiscal year China lent Pakistan $1.5 billionin bilateral loans, according to a finance ministry document seen byReuters. During this period Pakistan also received $2.9 billion incommercial bank loans mostly from Chinese banks, ministry officials toldReuters.